Oil prices moved lower on Wednesday, after rising more than 1% in the previous session, as investors assessed Russian supply risks following Ukrainian drone attacks on energy infrastructure.
Brent crude futures decreased 27 cents, or 0.4%, to $68.20 U.S. a barrel, while U.S. West Texas Intermediate crude futures were down 31 cents, or around 0.5%, to $64.21 a barrel.
The benchmarks sailed 1% higher in the last trading session due to concerns that Russian supplies may be disrupted by Ukrainian attacks.
Russia’s oil pipeline monopoly Transneft had warned producers they might have to cut output following Ukraine’s drone attacks on critical export ports and refineries, three industry sources told Reuters on Tuesday.
Investors are also awaiting the outcome of the U.S. Federal Reserve’s September meeting, ending later today, when the central bank is expected to cut interest rates by 25 basis points.
Market sources, citing American Petroleum Institute figures, also said that U.S. crude and gasoline stocks fell last week, while distillate stocks rose.
Focus is also on stockpile data from the U.S. Energy Information Administration - a Reuters poll of nine analysts estimated crude inventories fell while distillate and gasoline stockpiles rose.
