Overview

• Oil prices dropped from multi-week highs as disappointing Chinese consumer spending data raised concerns about future demand.
• Brent crude fell to $73.59 per barrel, while U.S. West Texas Intermediate crude declined to $70.27 per barrel as of Tuesday morning trading.
• Market participants expect the U.S. Federal Reserve to cut interest rates by 0.25 percentage points during its two-day policy meeting, with further cuts in 2025 and 2026 under consideration.
• Geopolitical factors, including new EU sanctions on Russian oil and potential U.S. actions targeting Iranian oil trade, are contributing to supply uncertainty.
• Analysts note that lower interest rates could stimulate economic growth and oil demand, but oversupply risks from non-OPEC+ producers like the U.S. and Brazil remain a concern for 2025.