WTI holds steady near $70.00 as traders brace for Fed rate decision

• WTI price trades on a flat note around $70.20 in Tuesday’s early Asian session. 
• Weak Chinese spending data might weigh on the WTI price. 
• Geopolitical risks could cap its downside despite bearish market pressure.

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $70.20 on Tuesday. The WTI price trades flat as traders await the Federal Reserve's (Fed) interest rate decision on Wednesday. However, the concerns over sluggish global demand growth in China might cap the upside for the black gold for the time being. 

Chinese November Retail Sales came in slower than expected, raising the fear of weakness in consumer spending in China. This, in turn, undermines the WTI price as China is the world's largest oil importer.

Data released by the National Bureau of Statistics of China showed on Monday that the nation’s Retail Sales rose 3.0% YoY in November versus 4.8% prior, below the market consensus of 4.6%. "It's just a very bearish scenario where there's not a lot hope of demand growth for crude oil," said Bob Yawger, director of energy futures at Mizuho in New York.

Analysts believe the markets might turn cautious, and traders could take profits while awaiting the Federal Reserve's (Fed) interest rate decision on Wednesday. The US Fed is anticipated to cut interest rates by 25 basis points (bps) at the December meeting. Traders will take more cues from the press conference and dot-plot after the monetary policy meeting. Any hawkish remarks from the Fed officials might lift the Greenback and drag the USD-denominated commodity price lower. 

On the other hand, the geopolitical risks amid additional sanctions on crude producers Russia and Iran might help limit the WTI’s losses. US Treasury Secretary Janet Yellen emphasized the possibility of targeting Chinese banks and “dark fleet” tankers to curb oil revenue funding Russia’s war in Ukraine. Furthermore, heightened sanctions on Iranian crude exports might boost the WTI price.