By Sam Li and Lewis Jackson

(Reuters) – Oil prices held steady in early trading on Wednesday, after rising more than 1% in the previous session on drone attacks on Russian ports and refineries, while traders awaited an expected rate cut from the U.S. Federal Reserve.

Brent crude futures dropped 1 cent to $68.46 a barrel by 0114 GMT, while U.S. West Texas Intermediate crude futures also fell 1 cent to $64.51 a barrel.

Reuters reported on Tuesday that three industry sources said Russia’s oil pipeline monopoly Transneft (TRNF_p.MM) has warned producers they may have to cut output following Ukraine’s drone attacks on critical export ports and refineries.

Oil prices settled more than 1% higher in the last trading session due to concerns Russian supply may be disrupted.

Meanwhile, European

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