Oil prices moved up and down in early Asian trading on Tuesday, with investors worried about Chinese demand and awaiting the decision on US interest rates scheduled for Wednesday.
U.S. West Texas Intermediate crude was down 6 cents at $70.65 a barrel by 0112 GMT, while Brent lost 1 cent to $73.90 a barrel.
Prices were influenced by profit-taking after last week’s 6% rally and a string of disappointing Chinese economic data yesterday, said Tony Sycamore, market analyst at IG.
Prices fell from multi-week highs on Monday due to unexpectedly weak consumer spending data in China, despite strong industrial production, and because investors took a wait-and-see attitude ahead of the US Federal Reserve meeting.
The Fed will hold its final meeting of the year on Tuesday and Wednesday, during which it is expected to cut interest rates by a quarter of a percentage point.
The meeting will also discuss how far officials plan to reduce interest rates further in 2025 and 2026, and whether the central bank will scale back its easing in anticipation of higher inflation under the incoming Trump administration.
Lower interest rates can boost economic growth and demand for oil.
Swiss
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