On December 17, oil prices began to decline amid economic data from China that heightened fears of a slowdown in demand. In addition, investors were cautious ahead of the US Federal Reserve’s decision on interest rates. About this informs Reuters.
Brent crude futures fell 6 cents to $73.85 a barrel, while U.S. West Texas Intermediate (WTI) crude lost 11 cents to trade at $70.60 a barrel.
“Prices were weighed down by profit locking after last week’s 6% gain and a series of disappointing data on the Chinese economy”, – notes IG analyst Tony Sycamore.
The day before, oil prices moved away from several-week highs. This was driven by weak consumer spending in China, despite positive industrial production data. Investors also took a cautious stance in anticipation of the Fed’s decisions.
The last Federal Reserve meeting of the year is scheduled for Tuesday and Wednesday: the market expects the Fed to cut interest rates by 0.25%.
