Oil sank as economic growth fears balanced OPEC+ trims
Oil plunged on Monday triggered by concerns about the economic impact of the US Federal Reserve potentially rising interest rates, as well as dismal Chinese manufacturing data, outweighed support from new OPEC+ production cuts beginning this month.
Brent crude slumped by $1.64 to $78.69 per barrel meanwhile US West Texas Intermediate crude dropped by $1.66 to $75.12 per barrel.
The Fed is likely to raise interest rates by another 25 basis points when its upcoming meeting in the 2nd and the 3rd of May. On Monday, the US dollar strengthened versus its major pairs, making oil high-priced for holders of other currencies.
The spotlight was on China's weak economic figures. China's manufacturing purchasing managers' index (PMI) fell to 49.2 in April from 51.9 in March, falling below the 50-point mark that distinguishes monthly expansion from shrink in activity.
OPEC's voluntary output cutbacks of approximately 1.16 million barrels provided shored up the prices.
