Oil prices in holding pattern before US Fed’s decision
The US Federal Reserve will hold its last policy meeting of the year on Tuesday and Wednesday
17 December 2024 - 07:47
byReuters
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Beijing — Oil prices were rangebound in early Asian trading on Tuesday as investors worried about Chinese demand and awaited further market direction from a US interest rate decision due on Wednesday.
US West Texas Intermediate crude was down 6c at $70.65 a barrel at 1.12 GMT, while Brent crude futures fell 1cto $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 US 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.
The meeting will also shed light on how much further officials think they will cut interest rates in 2025 and 2026, and whether the central bank will scale back easing in anticipation of higher inflatio under the incoming Trump administration.
Lower interest rates can boost economic growth and demand for oil.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Oil prices in holding pattern before US Fed’s decision
The US Federal Reserve will hold its last policy meeting of the year on Tuesday and Wednesday
Beijing — Oil prices were rangebound in early Asian trading on Tuesday as investors worried about Chinese demand and awaited further market direction from a US interest rate decision due on Wednesday.
US West Texas Intermediate crude was down 6c at $70.65 a barrel at 1.12 GMT, while Brent crude futures fell 1cto $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 US 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.
The meeting will also shed light on how much further officials think they will cut interest rates in 2025 and 2026, and whether the central bank will scale back easing in anticipation of higher inflatio under the incoming Trump administration.
Lower interest rates can boost economic growth and demand for oil.
Reuters
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