08:42 AM EDT, 09/17/2025 (MT Newswires) -- Oil edged lower early on Wednesday following three days of gains, sticking within the tight range it has mostly remained within for more than a month, even as a report showed a larger than expected drop in U.S. oil inventories and U.S interest rates are likely be cut when the Federal Reserve's policy committee ends its meeting later this afternoon.

West Texas Intermediate (WTI) crude oil for October delivery was last seen down US$0.44 to US$64.08 per barrel, while November Brent crude was down US$0.45 to US$68.02.

WTI has traded in a tight range since Aug. 8, trading near US$65, while rising above that mark only once in the past five weeks. Prices are being supported by supply worries as Ukraine steps up attacks on Russian oil infrastructure amid continuing violence in the Middle East even as global supply is on the rise following 2.2-million barrels per day of OPEC+ supply increases.

The market is also eyeing a weakening U.S. dollar, which is trading near a four-year low ahead of an expected cut to U.S. interest rates by the Federal Reserve's policy committee on Wednesday afternoon. A lower dollar is usually supportive for commodities priced in the currency.

"Oil, having taken little notice of the US Dollar for most of the last week or so, decided the world's marker currency's demise ought to be important, and of course it is now latterly added to reasons to be bullish. Which is why, and barring any more headlines of failing Russian infrastructure, oil and every other market's eyes will be on the FOMC (Federal Open Market Committee) decision on US interest rates later. A 25-point basis cut is more than 'baked in', it could be argued that the state of the US Dollar at present has at least another four cuts already factored," PVM Oil Associates noted.

In its weekly survey, the American Petroleum Institute reported U.S. oil inventories fell by 3.42-million barrels last week, more than twice the consensus estimate for a drop of 1.6-million barrels according to Oilprice.com. The Energy Information Administration will release official inventory data later this morning.