2019.10.3010:34:00UTC+00Oil Prices Ease On Trade Worries

Oil prices fell slightly on Wednesday as trade worries overshadowed data showing a drop in U.S. crude inventories.

Benchmark Brent crude eased half a percent to $61.27 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 0.1 percent at $55.49 a barrel.

Hopes over a potential U.S.-China trade deal waned after reports suggested a phase one trade deal between the U.S. and China may not be signed by a summit in Chile next month.

Markets now brace for what seems almost assuredly to be a third rate cut in as many meetings of the Federal Reserve later today.

The Federal Open Market Committee announcement is scheduled for 2:00 p.m. ET, followed by a press conference with Powell at 2:30 p.m. ET.

U.S. crude inventories fell by 708,000 barrels in the week ended Oct. 25, compared with analysts' expectations for an increase of 494,000 barrels, according to data from the industry group, the American Petroleum Institute.

The EIA's data is due out later in the day. On the supply front, Russia's deputy energy minister said on Tuesday it was too early to talk of deeper output cuts by OPEC and its allies.