Oil Prices Drop On Demand Concerns Ahead Of FOMC Meet - Details

LONDON, Dec 17 (Reuters) - Oil prices fell on Tuesday as Chinese economic data renewed demand concerns while investors remained cautious ahead of a U.S. Federal Reserve decision on interest rates.

Brent crude futures LCOc1 eased 78 cents to $73.13 a barrel by 1415 GMT while U.S. West Texas Intermediate crude CLc1 was down 83 cents at $69.88.

Profit-taking after last week's 6% rally and Monday's batch of disappointing Chinese economic data weighed on prices, said IG market analyst Tony Sycamore.

On Monday, prices fell from multi-week highs on unexpected weakness in consumer spending data from China despite strength in industrial output.

Investors also moved into a holding pattern ahead of the Fed's last policy meeting of the year on Tuesday and Wednesday, where it is widely expected to cut interest rates by a quarter of a percentage point.

The meeting will also shed light on how much further officials think they will cut rates over the next two years and whether the central bank will scale back easing in anticipation of higher inflation under the incoming Trump administration.

FED RATE CUT PRICED IN

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

Lower interest rates can boost economic growth and demand for oil.

The oil market for next year could be affected by growing supplies from countries outside the OPEC+ producer group, such as the United States and Brazil, in tandem with slowing demand, chiefly in China.

The International Energy Agency's monthly report last week said that even with OPEC+ output cuts in place, there will be a supply overhang of 950,000 barrels per day (bpd) next year, representing almost 1% of world supply.

The European Commission, meanwhile, has announced a 15th package of EU sanctions against Russia over its invasion of Ukraine, including tougher measures against Chinese entities and more vessels from Russia's so-called shadow fleet, clamping down on those not regulated or insured by conventional Western providers.

A group of Western countries will begin to check insurance documents of Russia's shadow fleet in the English Channel, Danish straits, Gulf of Finland and the sound between Sweden and Denmark.

The new EU sanctions are unlikely to translate to any significant disruption because most flows no longer use Western services, said LSEG's Pham.

(Reporting by Paul Carsten in London, Colleen Howe in Beijing and Siyi Liu in SingaporeEditing by Ros Russell and David Goodman)