Oil retreats from multi-month highs ahead of Fed decision [Video]

Oil prices edged lower on Wednesday after hitting multi-month highs in the previous session, as investors braced for the U.S. Federal Reserve’s interest rate policy announcement later in the day.

Brent crude futures for May fell 62 cents, or 0.71%, to $86.76 a barrel by 1028 GMT. U.S. West Texas Intermediate futures for April delivery , which expire on Wednesday’s settlement, fell 71 cents, or 0.85%, to $82.76 a barrel. The more active May WTI contract was at $82.11 a barrel, down 62 cents, or 0.75%.

Investors are looking ahead to the Federal Reserve’s announcement later on Wednesday for signs of its interest rate path for the rest of the year.

The Fed is not predicted to cut borrowing costs, but fresh economic projections could signal fewer interest rate cuts and a later start to the policy easing than previously expected.

The U.S. dollar index edged higher ahead of the …