Oil prices continued to decline on Wednesday, following the announcement of weaker-than-expected economic data, concerns over declining demand from China, the world's largest oil consumer, outweighed any good developments in the U.S. debt ceiling deal.

Brent crude futures dipped 28 cents to $73.43 per barrel by 0250 GMT, while US West Texas Intermediate crude slid 26 cents to $69.20 per barrel.

On account of weaker demand, China's manufacturing activity shrank more quickly than anticipated in May, with the official manufacturing purchasing managers' index (PMI) falling to 48.8 from 49.2 in April. The result fell short of the forecast's 49.4 prediction.

Trader sentiment improved a little in the United States after legislation President Joe Biden and House Speaker Kevin McCarthy negotiated to raise the country's $31.4 trillion debt ceiling and achieve new federal spending cuts cleared a significant obstacle late on Tuesday.

Based on calculations by Reuters, the total amount of cutbacks by OPEC+ now stands at 3.66 million barrels per day (bpd) after Saudi Arabia and other OPEC+ members announced additional oil output reductions of about 1.2 million bpd in April.