West Texas Intermediate (WTI) US Crude Oil prices struggle to capitalize on the previous day's modest gains and oscillate in a narrow band, around the $69.70-$69.75 area during the Asian session on Tuesday. The commodity, meanwhile, remains within the striking distance of a nearly three-week low touched last Friday and seems vulnerable to prolonging the recent fall witnessed over the past two weeks or so.
The initial market reaction to an interest rate cut by the People's Bank of China (PBOC) on Monday turned out to be short-lived amid concerns over slowing demand, which continues to act as a headwind for Crude Oil prices. The Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) trimmed their global demand forecast last month amid an economic downturn in China – the world's biggest oil importer. The fears were further fueled by the overnight warning by IEA head Fatih Birol, saying that weakness in China will continue to weigh on global oil demand in the coming years