Oil Prices Steady Ahead of Fed Decision

17 Dec 2024 , 10:28 AM

As investors anticipated additional market guidance from a U.S. interest rate decision scheduled on Wednesday and fretted about Chinese demand, oil prices remained range-bound in early Asian trading on Tuesday.

Brent crude futures down 1 cent to $73.90 a barrel, while U.S. West Texas Intermediate crude was down 6 cents at $70.65 a barrel.

Prices dropped Monday from multi-week highs due to investors entering a holding pattern ahead of the U.S. Federal Reserve meeting and unexpected weakness in China’s consumer spending statistics, despite industrial output’s rise.

It is generally anticipated that the Fed would lower interest rates by a quarter of a percentage point during its final policy meeting of the year, which is scheduled for Tuesday and Wednesday.

The meeting will also reveal whether the central bank will reduce easing in preparation for greater inflation under the new Trump administration, as well as how much more officials anticipate cutting interest rates in 2025 and 2026.

The demand for oil and economic growth can both be enhanced by lower interest rates.

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