Oil prices fell on Monday, amid concerns regarding the economic impact of a potential interest rate hike by the Federal Reserve and weak Chinese manufacturing data. July Brent crude futures dropped 0.7% to $79.77 per barrel. West Texas Intermediate crude also declined 0.8% to $76.15.
The Federal Reserve is expected to raise interest rates by 25 basis points again this week, while the Reserve Bank of Australia is likely to keep rates unchanged next week. Additionally, the European Central Bank could potentially surprise markets with a significant half-point hike in the same week.
China's manufacturing Purchasing Managers' Index (PMI) fell to 49.2 from 51.9 in March, dropping below the 50-point mark that separates expansion from contraction in activity on a monthly basis.
As of Monday, production cuts of approximately 1.16 million barrels per day began, following a surprise decision made last month by the OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia.
