Rising U.S. crude inventories push oil futures lower, with API reporting a 1.96M barrel build. Bearish sentiment grows as traders await Fed rate cut decision.

Oil fell on Wednesday after two sessions of gains after an industry report showed increasing U.S. crude and fuel inventories, offsetting rising tension in the Middle East and the potentially bullish impact of a U.

Oil futures trimmed losses Wednesday, after government data showed U.S. crude inventories fell last week and the Fed delivered a half-point rate cut.

Oil prices fell on Wednesday as the market cautiously awaited a rate cut announcement from the Federal Reserve, while investors digested a mixed crude and fuel storage report out of the United States.