Oil prices fell on Tuesday as Chinese economic data renewed demand concerns, while investors remained cautious ahead of the U.S. Federal Reserve's interest rate decision.

Brent crude futures were down 32 cents at $73.59 a barrel by 0949 GMT, while U.S. West Texas Intermediate crude futures were down 44 cents at $70.27 a barrel.

Prices were "weighed down by profit-taking after last week's 6% rally and a batch of disappointing Chinese economic data yesterday," said IG market analyst Tony Sycamore.

Prices fell from multi-week highs on Monday on unexpectedly weak consumer spending data from China, despite strength in industrial output, and as investors shifted into a holding pattern ahead of the Fed meeting.

The Fed holds its final policy meeting of the year on Tuesday and Wednesday, when it is widely expected to cut interest rates by a quarter of a percentage point.

The meeting will also reveal how far officials think they will cut interest rates in 2025 and 2026, and whether the central bank will scale back easing in anticipation of higher inflation under the incoming Trump administration.

"The 25 basis point cut has been priced in by the market, so any surprises (from the Fed meeting) could move the market," said Anh Pham, an analyst at LSEG.

Lower interest rates could boost economic growth and oil demand.

The oil market next year could be affected by rising supply from non-OPEC+ countries such as the U.S. and Brazil and slowing demand, especially in China.

Source: Investing.com