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Global oil prices fell 1% on Tuesday, 17 December 2024, reaching a one-week low amid demand concerns fuelled by weak economic data from China.

• Brent crude futures declined by 72 cents to settle at $73.19/barrel. 
• WTI crude dropped 63 cents to close at $70.08/barrel.

China, the world's second-largest economy, reported mixed economic data. While industrial output growth showed a slight improvement in November, retail sales were disappointing, renewing calls for more consumer-driven stimulus measures. 

Meanwhile, oil prices found some support from an American Petroleum Institute (API) report showing a 4.7 million-barrel drop in US crude inventories. If confirmed by the official data from the Energy Information Administration (EIA), this would mark the fourth consecutive weekly decline, signalling a possible tightening supply.

Market participants are now closely watching the upcoming decision from the US Federal Reserve, as any change in interest rates could influence the strength of the US dollar, which has a direct impact on oil prices.

Written by: Muhammad Hafiz