Oil prices decline before the release of inventory and interest rate data in America

Oil futures prices fell in trading on Tuesday in light of fears of a slowdown in global demand and the possibility of increasing supply in the global market over the next year.
At the same time, investors are awaiting the release of the weekly US crude inventory data, and the US Federal Reserve’s decision regarding the interest rate on Wednesday.

West Texas Intermediate crude oil price

The price of West Texas Intermediate crude, the US oil standard, fell by $0.31, or 0.9%, to $70.08 per barrel for next January delivery.

Brent crude, the global oil standard, also fell by $0.61, or 0.84%, to $73.30 per barrel for February delivery.

Excess supply

The International Energy Agency had stated in its monthly report issued last week that the global market would witness a surplus supply of 950,000 barrels per day, despite the efforts of the OPEC Plus group of oil-exporting countries to reduce production.
Chinese economic data also showed a decline in refinery activity, against the backdrop of weak growth in retail fuel sales, which raised concerns about a slowdown in demand for crude in the world’s largest importing country.