West Texas Intermediate (WTI) crude oil has regained its position at $70 ahead of the Federal Reserve (Fed) interest rate decision at the FOMC meeting in midweek.
At 2.30 pm, WTI prices rose to $70.42, up 0.33% since it opened early Tuesday in Asian trading.
In addition, concerns over sluggish global demand growth in China may limit crude oil price gains for now.
Economic data in November came in slower than expected, which could raise concerns about weakness in consumer spending in China as they are among the world's largest oil importers.
Analysts believe the market may be cautious and some have started taking profits ahead of the Fed's interest rate decision, which is expected to be cut by 25 basis points at the December meeting.
Now, the market will take more cues from the press conference after the meeting, especially hawkish statements from Fed officials that may further strengthen the USD and drag the crude oil market lower.
On the other hand, geopolitical risks amid additional sanctions on Russian and Iranian crude oil producers may help limit WTI losses.
US Treasury Secretary Janet Yellen has highlighted the possibility of targeting Chinese banks and tankers to curb oil support for Russia's war in Ukraine.
Furthermore, higher sanctions on Iranian crude exports may also boost WTI prices.
