Oil continued dips on Monday on hints of dismal fuel demand and as Fed’s statement quashed hopes of interest rate trims, which could hinder growth and curb the world's largest economy's demand.

Brent crude dipped 0.3% to $82.54 per barrel while U.S. WTI plunged by 0.2% at $78.07 per barrel.

The PPI in China shrank in April indicating the demand lingered slow and on the other hand the US economic figures hinted a shrink as well.

The two benchmarks steadied at $1 on Friday as Fed negotiated if the US interest rates are [peaked enough to tame inflation at 2%, countering gains hit previously the earlier week that was mainly triggered from the tension between Israel and Gaza.

Projections from analysts hover around that the central bank in the US will likely maintain interest rate for extended period, buoying the greenback. For investors holding different currencies, oil priced in US dollars becomes pricier due to a stronger greenback.

The market is still buoyed by projections that OPEC+, could continue supply trims for the second half of 2024.