RTRS:UPDATE 3-Oil near 6-week low as Ukraine concern eases; Fed in focus
* Fed poised to trim bond buying, rewrite rates guidance
* API says U.S. crude stocks up 5.9 million barrels
* Coming up: EIA weekly oil inventory data at 1430 GMT (Updates prices; previous SINGAPORE)
By Alex Lawler
LONDON, March 19 (Reuters) - Oil fell towards $106 a barrel on Wednesday, close to a six-week low, as concern eased about an escalation of the Ukraine crisis and on forecasts for a rise in U.S. oil inventories.
Russian President Vladimir Putin signed a treaty on Tuesday making Crimea part of Russia again, but said he did not plan to seize any other regions of Ukraine. Western sanctions imposed on Monday targeted individuals, but not broad trade.
Brent was down 49 cents at $106.30 a barrel by 0949 GMT. It had traded as low as $105.85 on Tuesday, the lowest since Feb. 5. U.S. crude slipped 2 cents to $99.68.
"For Brent, we are at similar levels to yesterday - Ukraine and the Crimea are not having much impact," said Christopher Bellew, a broker at Jefferies Bache in London.
Oil also came under pressure from a report on Tuesday by industry group the American Petroleum Institute that showed U.S. crude inventories rose by 5.9 million barrels last week, more than analysts forecast.
Attention will focus on the weekly report from the U.S. government's Energy Information Administration at 1430 GMT to see whether it confirms the buildup.
Still, U.S. crude's decline was limited by data in the API report showing stocks at the Cushing, Oklahoma oil hub fell by 1 million barrels, and by the expansion of a key pipeline.
The operator of the Seaway pipeline that takes crude from Cushing to the U.S. Gulf Coast said the conduit would be ready to double shipments by May, earlier than some analysts thought.
This will drain stockpiles at Cushing, and lend support to U.S. crude prices, analysts say.
"The API crude build has not had as much impact as one might expect because of yesterday's news," Bellew said.
Markets are waiting for the Federal Reserve's decision later in the day. The Fed is set to trim its bond-buying stimulus and will probably rewrite its guidance on when it might eventually raise interest rates. (Additional reporting by Jacob Pedersen in Singapore; Editing by Dale Hudson)
