• Crude Oil dips lower with nervousness picking up towards the crucial Fed meeting.
• Overnight API data was a surprise build against all expectations. 
• The US Dollar Index remains under pressure, trading at the lower boundary of September’s bandwidth. 

Crude Oil drops lower this Wednesday in a very calm market which is looking ahead to the US Federal Reserve (Fed) meeting later this Wednesday. Meanwhile India’s government has removed the windfall tax on crude oil Bloomberg reports. Despite expectations for a drawdown on the back of tropical storm Francine whipping out large portions of production in the Gulf, the overnight stockpile number from the American Petroleum Institute was a build of 1.96 million barrels. 

The US Dollar Index (DXY), which measures the performance of the Greenback against a basket of six different currencies, is trading on the downside again. Market expectations are very split over the size of the initial rate cut. The outcome later this Wednesday could be a volatile event.