Crude oil prices decline before the Fed's crucial decision on interest rate adjustments.

• This month, concerns about an increasing disparity between oil supply and demand have caused turbulence in the oil market.
• The hope of bulls is that the Fed's decision to cut interest rates for the first time in years could stimulate the market.

The Federal Reserve's decision on interest rates later this afternoon caused U.S. crude oil to fall on Wednesday.

According to Matt Smith, lead oil analyst for the Americas at Kpler, while in theory a rate cut is supportive for oil prices, recent price rallies suggest that this has already been factored in, resulting in a muted response.

This month, concerns about a supply and demand imbalance have caused fluctuations in the oil market. Specifically, the U.S. benchmark has decreased by over 13% in the third quarter, while Brent, the global benchmark, has fallen by more than 15%.

Here are Wednesday's energy prices:

• The October contract price for crude oil is $70.65 per barrel, which represents a 54-cent decrease or 0.8% drop compared to the previous price. To date in the year, the U.S. has experienced a decline in crude oil of more than 1%.
• The November contract price per barrel is $73.16, a decrease of 54 cents or 0.7%, compared to the year-to-date global benchmark fall of approximately 5%.
• The price of gasoline in October was $1.9855 per gallon, which represents a 0.8% decrease compared to the previous month. To date in the year, gasoline prices have fallen by more than 5%.
• The October contract price for gas is $2.369 per thousand cubic feet, representing a 1.9% increase. Despite this, year-to-date, gas has experienced a decline of more than 5%.

Electric vehicle sales are on the rise in China, leading to a slowdown in consumption, while OPEC+ is predicted to boost production in December, despite strong output in the U.S., Canada, Brazil, and Guyana.

The Fed's decision to cut interest rates for the first time in years could stimulate economic growth and boost oil demand, giving bulls hope for a market bid.

Andy Lipow, president of Lipow Oil Associates, stated that a 25 basis point cut is already reflected in the oil market. "A 50 basis point cut would be slightly beneficial to the oil market because it implies a weaker dollar and higher prices for dollar-denominated commodities," Lipow added.

In the Middle East, geopolitical tensions are intensifying as concerns mount that a significant conflict between Israel and the Iran-backed militia Hezbollah may occur. On Tuesday, hundreds of pagers detonated in Lebanon in an attack aimed at Hezbollah militia members.

At 10:30 am ET, traders are anticipating the release of the latest information regarding U.S. crude oil inventories.