Crude oil prices pared early gains during electronic trading on the New York Mercantile Exchange and the commodity was trading flat around $73.80 a barrel as Asian markets closed.
Following a drop of 3.7 per cent last week, crude prices were steady this morning as traders awaited a key statement from the Federal Open Markets Committee assessing the health of the US economy.
"If they lower their forecasts as some people are expecting, oil prices would be pushed down because it implies lower demand," said Michelle Kwek, an analyst at Informa Global Markets in Singapore, speaking to Reuters.
Heating oil prices were also relatively flat this morning, selling marginally higher above $2.10 a gallon as European trading got underway.
Following last week's tumultuous trading, investors are once again turning their attention to economic fundamentals to guide their direction in the market.
Price jumped above $78 a barrel last week but soon retreated after the threat of a sustained US pipeline shutdown was avoided.
