Ammon News - Oil prices held steady on Wednesday after falling about 1% in the previous session, as investors watched for progress in Russia-Ukraine peace talks and awaited a decision on U.S. interest rates.

Brent crude futures were up 19 cents, or 0.3%, to $62.13 a barrel at 0645 GMT. U.S. West Texas Intermediate crude was at $58.44 a barrel, up 19 cents, or 0.3%.

"Oil markets are currently struggling for direction as far as we can see, with a minor lift from falling U.S. inventories as reported by API," said Suvro Sarkar, lead energy analyst at DBS Bank, referring to the American Petroleum Institute.

Market sources, citing API figures, said on Tuesday that U.S. crude inventories fell by 4.78 million barrels last week, while gasoline stocks rose by 7 million barrels and distillate inventories rose by 1.03 million barrels.

Meanwhile, markets were expecting the U.S. Federal Reserve to reduce its key interest rate by a quarter point at its Wednesday meeting to support a cooling labour market. Lower interest rates could lift oil demand by boosting economic growth.

Reuters