Dear clients,
Oil prices fell a dollar a barrel on Monday after weak economic data from China and expectations of another U.S. rate hike outweighed support from OPEC+ supply cuts set to take effect this month.
Brent crude fell $1.02, or 1.3%, to $78.45 a barrel, while WTI went down $1.12, or 1.5%, to $75.66.
Manufacturing activity in China fell unexpectedly in April, official data showed on Sunday, marking the first decline in the manufacturing purchasing managers‘ index since December.
The market is highly dependent on what happens with China, and the latest news from the manufacturing sector is disappointing, analysts say. China is still seen as the biggest driver of oil demand growth this year.
Banking concerns have also weighed on oil in recent weeks, with the third major US institution failing in two months; U.S. regulators seized First Republic Bank over the weekend ahead of a deal in which JPMorgan is acquiring most of its assets.
Voluntary production cuts of around 1.16 million barrels per day by members of the Organization of the Petroleum Exporting Countries and allies come into effect from May.
