Oil prices edged slightly lower in early Asian trade on Tuesday, with Brent futures at $73.81 per barrel and WTI at $70.20. This decline followed weak economic data from China, raising concerns about demand, and cautious sentiment ahead of the U.S. Federal Reserve’s policy meeting later this week.
China’s November industrial output showed modest growth, but retail sales sharply slowed, and real estate prices continued to decline, signaling fragile domestic demand and limited support for oil consumption.
Markets are awaiting the Fed’s expected 25 basis point rate cut, though signals of a slower pace of future cuts are adding uncertainty. Last week’s rally in oil prices, supported by expectations of tighter supplies and potential Chinese stimulus, has given way to this week’s pressure from demand concerns and Fed-related caution.
