Oil prices fall amid economic growth concerns

Oil fell on Monday as concern over the economic impact of the U.S. Federal Reserve potentially raising interest rates and weaker Chinese manufacturing data outweighed support from new OPEC+ supply cuts taking effect this month.

The Fed, which meets on May 2-3, is expected to increase interest rates by another 25 basis points.

The U.S. dollar rose against a basket of currencies on Monday, making oil more expensive for other currency holders.

Brent crude fell $1.64, or 2.0%, to $78.69 a barrel, while U.S. West Texas Intermediate (WTI) crude slid $1.66, or 2.2%, to trade at $75.12.

Banking fears have weighed on oil in recent weeks.

Meanwhile, China’s manufacturing purchasing managers’ index (PMI) declined to 49.2 from 51.9 in March, slipping below the 50-point mark that separates expansion and contraction in activity on a monthly basis.

Some support came from voluntary output cuts of around 1.16 million barrels per day by members of the Organisation of Petroleum Exporting Countries and allies including Russia, (OPEC+) which takes effect from May.

Reuters/Hauwa Abu