Oil prices rose on Wednesday, for the second day in a row, after the release of preliminary data that showed a drop  in the US crude inventories, and ahead of the EIA's weekly report.

US crude rose 1.3% to $71.78 a barrel, after opening at $70.83, and hit a low at $70.67, and Brent crude rose 1.4% to $74.54 a barrel, after opening at $74.54, and hit a low at $74.51.

The US crude gained 0.4% yesterday, and Brent crude rose 0.8%, in the first gain in 3 days, as most dollar-denominated commodities rose.

The American Petroleum Institute reported in preliminary data that the US crude inventories fell 6.1 million barrels during the week ending September 17, while analysts forecast a drop by 3.8 million barrels.

The total US commercial inventories fell to 418.5 million barrels, which is the lowest level since the week ending September 27, 2019, in a positive sign of the US domestic demand.

The US Energy Information Administration's official data will be released later today, amid forecasts for inventories to drop by 3.3 million barrels.

Gold prices steadied on Wednesday, as investors shied away from building new positions amid anticipation of the US Federal Reserve's decisions.

Gold prices held at $1,775.25 an ounce as of 09:18 GMT, after opening at $1,773.93, and hit a high of $1,780.32 and a low $1,772.36.

Gold closed higher by 0.6% yesterday, after hitting 6-week low at $1,742.02 an ounce.

Gold prices rose due to investors' risk aversion and rising safe haven demand due to concerns over the Evergrande Company crisis.

The US Federal Reserve's monthly meeting will conclude later today, amid expectations of holding the benchmark interest rate near zero.

The decision will be reveled at 18:00 GMT, and will be followed by a press conference from the Fed Chief Jerome Powell at 18:30 GMT to comment on monetary policy.

The meeting is expected to offer some clues on the pace of cutting down the bonds purchases program before the end of this year.

Gold stocks at the SPDR ETF fell 0.87 metric tonnes yesterday, with the total at 1000.79 metric tonnes.

Sterling declined in European trade against dollar to four-week lows, resuming yesterday's losses ahead of the Federal Reserve's policy decisions later today.

GBP/USD fell 0.2% to 1.3633, the lowest since August 23, with a session high at 1.3678.

Yesterday, the pound rose 0.1% against dollar, the first profit in four weeks.

The dollar index rose 0.1% on Wednesday, resuming gains after two days of profit-taking against a basket of major rivals. 

The Federal Reserve will decide on monetary policy and offer some clues on the pace of cutting down the bonds purchases program. 

Sterling is also pressure by expectations surrounding the Bank of England's meeting tomorrow, with members expected to support in favor of continuing current easy policies. 

Most of the US stock indices fell on Tuesday, giving up early gains, ahead of the Federal Reserve's monetary policy decisions.

China's real estate giant Evergrande continues to face a disastrous debt default scenario, which could destabilize many economic sectors in China.

The US current account reading showed a deficit of $190 billion in August, better than forecasts of -$193 billion.

The number of the US building permits was at 1.73 million in August, while the number of housing starts was at 1.62 million units, beating forecasts of 1.55 million.

The Fed will convene later today to decide on monetary policy and provide clarity over the future of its moves, and will unveil its decisions tomorrow.

The Organization for Economic Cooperation and Development slashed its forecast for global economic growth in 2021 to 5.7%, and lowered its forecast for the US economic growth this year to 6%.

To the oil market, WTI crude October futures rose 0.4% or 27 cents, and closed at $70.56 a barrel.

Brent November futures rose 0.6% or 44 cents, and closed at $74.36 a barrel.

As for stocks, Dow Jones fell 0.1% or 50 points, and closed at 33,919, and hit a day high of 34,313, and a low of 33,914.

S&P 500 fell 0.1% or 3 points to 4,354, after hitting a high of 4,394 and a low of 4,347 points.

Nasdaq rose 0.2% or 32 points to 14,746 points, with a high of 14,847 and a low of 14,696.