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Oil prices remained range-bound in early Asian trading on Tuesday as investors awaited direction from the U.S. Federal Reserve’s upcoming interest rate decision and expressed concerns about demand from China.
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U.S. West Texas Intermediate (WTI) crude was down by 6 cents at USD 70.65 per barrel, while Brent crude futures dipped 1 cent to USD 73.90 per barrel.
“Prices were weighed on by profit-taking following last week’s 6% rally and disappointing Chinese economic data,” said Tony Sycamore, an IG market analyst.
On Monday, oil prices pulled back from multi-week highs following weaker-than-expected consumer spending data from China, despite stronger industrial output. Investors are adopting a wait-and-see stance ahead of the U.S. Federal Reserve’s final policy meeting of the year, scheduled for Tuesday and Wednesday.
The Fed is widely expected to cut interest rates by a quarter-point, and market participants are keen to learn about future rate-cut expectations for 2025 and 2026, especially in light of potential higher inflation under the incoming Trump administration.
Lower interest rates typically support economic growth and boost demand for oil.
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