By Polya Lesova, FRANKFURT (MarketWatch) -- Oil futures edged lower early Wednesday, as traders awaited data on petroleum inventories and a statement on monetary policy from the Federal Reserve. Crude oil for November delivery fell 59 cents, or 0.8%, to $71.17 a barrel in electronic trading on Globex. The contract had risen 2.6% in the previous session. Inventory data from the American Petroleum Institute (API) showed an unexpected build in inventories "which has put the market on edge ahead the more respected EIA inventory numbers," said Nimit Khamar, analyst at Sucden Financial Research, in a note to clients. "Although economic data continue to point to improving economic conditions, oil fundamentals and crude demand still remain feeble and this has left market participants wary over a possible sharp correction," Khamar said. The API reported late Tuesday that crude oil stocks rose by 276,000 barrels and motor gasoline stocks by 3.8 million barrels. Distillate supplies fell by 1.8 million barrels, the data showed. The Energy Information Administration will release its more closely watched supply report on Wednesday morning. Analysts surveyed by Platts expect a decline in crude stocks of 2.25 million barrels for week ended Sept. 18. They also expect a drop in refinery utilization rates. The analysts project buildups of 800,000 barrels in gasoline stocks as well as 1.5 million barrels in distillate stocks. Energy traders are also awaiting a statement from the U.S. Federal Open Market Committee which is due on Wednesday afternoon Eastern time. The Fed is not expected to announce a change to interest rates, but its policy statement will be examined for any clues as to whether the central bank will continue with a program to buy $1.25 trillion worth of mortgage-backed securities.

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