Brent crude falls marginally, trades above $88

Oil drilling rigs

Oil prices fell marginally on Wednesday ahead of an update from the US Federal Reserve and the US Energy Information Administration's (EIA) inventory data.

Oil prices hit seven-year highs last week on worries that supplies could tighten due to Ukraine-Russia tensions.

Crude prices witnessed a volatile week after falling more than 2% on Monday before rebounding and trading near the highest level in seven years. Several Wall Street banks, including Goldman Sachs, estimate crude to rise to $100 a barrel this year over tightening supplies.

US President Joe Biden said he would consider personal sanctions on President Vladimir Putin if Russia invades Ukraine.

Brent crude futures fell 0.2% to $88.06 a barrel at 9 am Makkah time.

US West Texas Intermediate (WTI) crude futures slipped 0.4% to $85.29 a barrel.

Crude oil inventories in the US declined by 872,000 barrels in the week ending Jan. 21, according to American Petroleum Institute data. However, the stocks of gasoline gained 2.4 million barrels.

The EIA is due to release official inventory data later today.