Oil Falls Amid Profit-Taking Ahead of Fed

Oil prices fell on Wednesday as investors booked profits ahead of the announcement of a Federal Reserve decision and US Energy Information Administration data on crude stocks. Still, concerns about supply shortages due to geopolitical tensions limited losses.

Oil prices hit a seven-year high last week amid fears of tight supplies due to tensions between Ukraine and Russia. US President Joe Biden said he would consider sanctions against President Vladimir Putin if Moscow invaded Ukraine on Tuesday, as Western leaders ramped up military preparations and drew up plans to protect Europe from a potential energy supply crisis.

Brent crude futures fell 32 cents, or 0.4 percent, to $87.88 a barrel by 0513 GMT, after jumping 2.2 percent in the previous session.

US West Texas Intermediate crude futures were down 45 cents, or 0.5%, at $85.15 a barrel, after rising 2.8% on Tuesday.