Brent oil prices held steady above $86 a barrel on Wednesday as investors awaited guidance from the Federal Reserve on US monetary policy later in the day and after industry data on US inventories came in more or less as expected.Investors were also awaiting data on closely-watched stockpiles from the US government’s Energy Information Administration due later on Wednesday.

Industry group American Petroleum Institute (API) on Tuesday showed US crude inventories were up by 3.2 million barrels in the week to 24 October to 375.1 million, compared with an analysts’ survey by Reuters that indicated an expected gain of 3.4 million barrels.

Brent crude for December delivery was up 24 cents at $86.27 a barrel early on Wednesday, after settling up 20 cents.

NYMEX crude for December delivery was up 28 cents at $81.70 a barrel, after settling up 42 cents at $81.42 on Tuesday as the dollar fell and US equities rose.

The Federal Open Market Committee (FOMC) winds up a two-day policy meeting on Wednesday and is widely expected to announce it will end its two-year-old bond-buying stimulus program, known as quantitative easing three, as the US economy continues to recover.

But Fed officials have also stressed they are not in a hurry to extend policy tightening by raising rates from near zero levels due to subdued inflation and a belaboured recovery in employment.

“Today’s focus is on the EIA and FOMC, but both are unlikely to prompt a move in oil prices of $1 or $2,” said Takayuki Nogami, senior economist at Japan Oil, Gas and Metals National. “Any moves are likely to be within a $1 range.”

The Fed is unlikely to make any clear statement on the timing of a rate hike, Nogami said.

Oil prices fell about 1% over two sessions before Tuesday’s gains, reacting to a looming contango in US crude futures and Goldman Sachs’ cut in its price forecast due to higher projected supplies.

Fears of growing US oil shale supply and Opec’s apparent reluctance to cut its own output have caused prices to fall about 25% since the end of June.

While most banks have lower price forecasts next year for Brent and US crude, some analysts think the markets may rebound quicker than projected.

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