Oil prices slumped on Tuesday, stretching losses from the previous session, as disappointing Chinese economic data and prospects of a rate hike in the United States weighed on the market.

Brent crude dipped by 0.3% to $79.07 per barrel while US WTI dropped by 0.3% to $75.41 per barrel. The two instruments dropped over $1 during the earlier session.

China's manufacturing activity unexpectedly dipped in April, according to official statistics released on Sunday, the first drop since December in the manufacturing purchasing managers' index.

CCTV reported over the weekend that passenger traffic on the first day of the holiday increased by 151.8% compared to the same day of the previous year, while the number of air, road, waterway, and railway trips ticked up by 56.99 million on the day.

Fed's meeting that is scheduled to be conducted for 2 days in a row starting from Tuesday will reveal the stance regarding the interest rate hikes which is projected to be raised by 25 bps.