Oil Drops as Weak China Data Offset OPEC+ Cuts

Oil fell on Monday as concern over the economic impact of the US Federal Reserve potentially raising interest rates and weaker Chinese manufacturing data outweighed support from new OPEC+ supply cuts taking effect this month.
The Fed, which meets on May 2-3, is expected to increase interest rates by another 25 basis points, Reuters reported. 
The US dollar rose against a basket of currencies on Monday, making oil more expensive for other currency holders.
Brent crude fell $1.21, or 1.5%, to $79.12 a barrel, while US West Texas Intermediate crude lost 96 cents, or 1.3%, to trade at $75.82.
"The prospect of further rate hikes to be announced by the Fed this week is expected to drive an increase in near-term price volatility," said Baden Moore, the head of commodity and carbon strategy at National Australia Bank.
In the week ahead, the Reserve Bank of Australia is widely expected to extend a rate hike pause on Tuesday and the European Central Bank could surprise with an outsized half-point increase on Thursday.
Weak economic data from China also weighed. China's manufacturing purchasing managers' index declined to 49.2 from 51.9 in March, slipping below the 50-point mark that separates expansion and contraction in activity on a monthly basis.