Crude oil futures were under pressure after giving up recent gains, as investors expressed concerns over Chinese demand and awaited further guidance from the U.S. Federal Reserve’s upcoming interest rate decision.
The pullback followed a rally in the previous week, driven by profit-taking and disappointing Chinese economic data, particularly weaker consumer spending, despite stronger industrial output.
This bearish sentiment reflects caution in the market, with concerns regarding Chinese demand potentially limiting upward momentum for global crude prices in the near term.
Market participants also remain cautious ahead of the U.S. Federal Reserve’s policy meeting, where a quarter-point interest rate cut is widely expected.
The outcome of the meeting could offer clarity on the Fed’s future policy direction, particularly regarding potential rate cuts in 2025. Investors are also monitoring whether the central bank will adjust its approach in response to inflationary pressures under the incoming administration. A reduction in interest rates could support economic growth and support oil demand, creating a more bullish outlook for global crude prices. However, ongoing uncertainties
