WTI crude drops near $70 amid global demand concerns

WTI crude oil futures edged closer to $70 per barrel on Tuesday amid growing concerns over weakening global demand as traders braced for the US Federal Reserve’s upcoming policy meeting.

WTI crude drops near $70 amid global demand concerns

China’s disappointing economic data added to the uncertainty surrounding the country’s economic prospects, raising fears of reduced consumption from the world's largest crude importer. This, combined with expectations of oversupply in the market next year, outweighed the impact of ongoing geopolitical tensions in Russia and the Middle East. Additional downward pressure came from weaker-than-expected manufacturing activity in both the US and Eurozone, which dampens fuel demand and weighs on crude prices.

Traders eye Fed's rate cut to boost oil demand

Looking ahead, traders are focusing on the Fed's final rate decision of the year, with a widely expected 25 basis points rate cut, which could spur economic growth and, in turn, boost oil demand.