Oil prices fell on Wednesday despite data showing a drop in crude inventory in the U.S. in the week ended September 15.
The Federal Reserve today left the interest rate unchanged, but projected a rate increase by the end of the year, and tightening of its monetary policy through 2024.
While the central bank's forecast for the end of the year was unchanged from June, the latest projections indicate officials expect rates to remain higher for longer than previously anticipated.
The forecast for rates at the end of 2024 was raised to 5.1% from 4.6% in June, while the outlook for rates at the end of 2025 was increased to 3.9% from 3.4%.
Expectations for rates to remain higher for longer may reflect an improved assessment of the economy, with the Fed's statement saying economic activity has been expanding at a "solid pace" compared to the "moderate pace" described in July.
West Texas Intermediate Crude oil futures for October settled lower by $0.92 at $90.28 a barrel on the expiration day.
WTI Crude futures for November settled at $89.66 a barrel, down $0.82 from the previous close.
Brent crude futures were down $0.98 at $93.36 a barrel a little while ago.
Data released by the U.S. Energy Information Administration (EIA) this morning showed crude inventory in the U.S. dropped by 2.136 million barrels last week, as against forecasts for an increase of 0.25 million barrels.
The data said gasoline stockpiles declined by 0.831 million barrels last week, as against forecasts for a 1.1 million barrel rise, while distillate stockpiles dropped by 2.867 million barrels. Distillate stockpiles were expected to rise by 1.05 million barrels in the week.
