Brent crude oil fell on Wednesday, pinned near 17-month lows, hit by worries over Spain's high borrowing costs and prospects for global demand growth.

Brent oil for August delivery was down 20 cents at $95.56 per barrel by 1156 GMT. It fell as low as $94.86 earlier, near Tuesday's trough of $94.44, its lowest since January, 2011.

U.S. July crude futures, which expire on Wednesday, were up 25 cents at $84.28 per barrel.

Expectations that the U.S. Federal Reserve's policy meeting may result in stimulus for the world's largest economy gave some lift to U.S. crude, but failed to halt a slide in Brent, which has tumbled around 22 percent this quarter, its biggest fall since late 2008.

"Oil has really decided it has no interest in the FOMC, it has not priced in any significant stimulus," said David Morrison, analyst at GFT Global.

The U.S. central bank will release a policy statement at the end of its two-day meeting later on Wednesday, followed by a briefing by Chairman Ben Bernanke at 1815 GMT.