SINGAPORE, Sept 20 Reuters Oil prices fell nearly 1 on Wednesday ahead of the U.S. Federal Reserve39;s interest rate decision, with investors uncertain when peak rates will be hit and how much of an impact it will have on energy demand.

Prices fell despite a biggerthanexpected draw in U.S. oil stockpiles and weak U.S. shale output that indicated tight crude supply for the rest of 2023.

Global benchmark Brent crude futures were last down 88 cents, or 0.9, at 93.46 a barrel by 0650 GMT. Brent hit 95.96 on Tuesday, its highest since November.

U.S. West Texas Intermediate crude futures shed 1, or 97 cents, to 90.23 a barrel, after climbing to a 10month high of 93.74 a barrel the previous day. The October WTI contract expires on Wednesday and the more active November contract was down 82 cents, or 0.9, to 89.66 a barrel.

The oil rally is taking a little break as every trader awaits a pivotal Fed decision that might tilt the scales of whether the U.S. economy has a soft or hard landing, said Edward Moya, senior market analyst at data and analytics firm OANDA.

Moya added that the oil market is still very tight and will remain so over the shortterm.

Unless Wall Street grows nervous that the Fed will kill the economy, the crude demand outlook should only gradually soften, but the oil market will easily have a supply deficit throughout winter.

Investors are awaiting a raft of central bank interest rate decisions this week, including the Fed39;s at 1800 GMT on Tuesday, to…