Oil drops as economic growth concerns offset OPEC+ cuts

Oil prices dropped more than a dollar a barrel on Monday after weak economic data from China and expectations of another U.S. interest rate hike outweighed support from OPEC+ supply cuts that take effect this month, Trend reports citing Reuters.

Brent crude fell $1.27, or 1.6%, to $79.06 a barrel by 11:21 a.m. EDT (1521 GMT). U.S. West Texas Intermediate (WTI) crude slid $1.39, or 1.8%, to trade at $75.39.

China's manufacturing activity unexpectedly declined in April, official data showed on Sunday, the first contraction since December in the manufacturing purchasing managers' index.

The U.S. Federal Reserve, which meets on May 2-3, is expected to increase interest rates by another 25 basis points. The U.S. dollar rose against a basket of currencies, making oil more expensive for other currency holders.

Source: Trend News Agency