Investing.com - Oil prices were steady at more than five-year lows on Wednesday after data showed that U.S. crude stockpiles fell less than expected last week as investors waited on the outcome of the Federal Reserve’s monthly meeting later in the day.
West Texas Intermediate crude oil futures for delivery in January were down 1.44% to $55.45 a barrel from around $55.97 ahead of the data.
Benchmark Brent crude was down 0.42% to $59.76 a barrel from around $59.96 ahead of the report. On Tuesday Brent fell below the $60 dollar a barrel threshold for the first time since May 2009.
The U.S. Energy Information Administration said in its weekly report that U.S. crude oil inventories fell by 0.847 million barrels in the week ending December 12, compared to expectations for a decline of 2.36 million barrels.
Total U.S. crude oil inventories stood at 379.9 million barrels as of last week.
The report also showed that total motor gasoline inventories rose by 5.25 million barrels, well above expectations for a gain of 1.78 million, while distillate stockpiles fell by 0.207 million barrels.
The data came one day after a report from the American Petroleum Institute showed an unexpected 1.9 million barrel increase in U.S. oil stockpiles
Oil prices have almost halved since June, pressured lower by a combination of concerns over the sluggish global demand outlook and ample supply.
Last Friday the International Energy Agency cut its global oil demand forecast for next year by 230,000 barrels a day to 900,000 barrels, following similar cuts by OPEC and the U.S. Energy Information Administration.
Investors remained wary ahead of the Fed’s policy statement, as ongoing speculation over the prospects for a U.S. rate hike next year have fuelled expectations that the bank may change its forward guidance, and drop the pledge to keep interest rates near zero for a “considerable time”.
Commodity markets have benefited from the Fed’s monetary easing program in recent years and could come under pressure if it tightens monetary policy.