Investing.com - U.S. oil futures fell to a three-week low on Wednesday, as investors remained cautious ahead of the release of key U.S. weekly supply data as well as a policy statement from the Federal Reserve.
On the New York Mercantile Exchange, West Texas Intermediate crude oil for delivery in June fell to a daily low of $100.14 a barrel, the weakest level since April 7.
Nymex oil last traded at $100.18 a barrel during European morning hours, down 1.09, or $1.10 a barrel. Prices rose 0.44%, or 44 cents, on Tuesday to settle at $101.28.
Futures were likely to find support at $99.95 a barrel, the low from April 7 and resistance at $102.20 a barrel, the high from April 29.
Market players awaited the release of weekly supply data out of the U.S. later in the session to gauge the strength of oil demand from the world’s largest consumer.
Wednesday’s government report was expected to show that crude oil stockpiles rose by 2.4 million barrels in the week ended April 25. Oil inventories rose by 3.5 million barrels in the preceding week to hit at an all-time high of 397.7 million.
The supply data was also expected to show that distillate stockpiles, including heating oil and diesel, rose by 600,000 barrels.
After markets closed Tuesday, the American Petroleum Institute, an industry group, said that U.S. crude inventories rose by 3.0 million barrels last week, compared to expectations for an increase of 2.1 million barrels.
The API report also showed that distillate stocks increased by 688,000 barrels, while gasoline stockpiles declined by 49,000 barrels.
Meanwhile, market players prepared for the outcome of the Fed’s policy meeting later in the day, amid expectations for another $10 billion reduction in the central bank’s now $65-billion-a-month stimulus program.
Key U.S. economic data will also be in focus. The U.S. is to release preliminary data on first quarter GDP, as well as the ADP report on private sector job creation. The U.S. is also to release data on manufacturing activity in the Chicago region.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for June delivery fell 0.58%, or 63 cents, to trade at $108.35 a barrel, while the spread between the Brent and U.S. crude contracts stood at $8.17 a barrel.
Markets largely shrugged off events in Ukraine, where pro-Russian separatists stormed regional government offices in the eastern city of Luhansk on Tuesday.