Oil prices remained steady in early Asian trading Tuesday, influenced by concerns about Chinese demand and anticipation of a U.S. interest rate decision. Prices retreated from recent highs following weak Chinese consumer spending data. Investors await the Fed's meeting, expecting a rate cut and insights into future monetary policy.
Oil prices were range-bound in early Asian trading on Tuesday as investors worried about Chinese demand and awaited further market direction from a U.S. interest rate decision due on Wednesday.
U.S. West Texas Intermediate crude was down 6 cents at $70.65 a barrel at 0112 GMT, while Brent crude futures fell 1 cent to $73.90 a barrel.
Prices were "weighed on by profit-taking after last week's 6% rally and a batch of disappointing Chinese economic data yesterday," IG market analyst Tony Sycamore said.
On Monday, prices fell from multi-week highs on unexpected weakness in consumer spending data from China, despite strength in industrial output, and as investors moved into a holding pattern ahead of the U.S. Federal Reserve meeting.
The Fed will hold its last policy meeting of the year on Tuesday and Wednesday, where it is widely expected to cut interest rates by a quarter of a percentage point.
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Lower interest rates can boost economic growth and demand for oil. (You can now subscribe to our ETMarkets WhatsApp channel )