Oil prices fell early on Monday, as jitters over the economic impact of the U.S. Federal Reserve, potentially raising interest rates and weaker Chinese manufacturing data were enough to outweigh support from new OPEC+ crude oil supply cuts taking effect this month.
Brent futures for July delivery were down 56 cents, or 0.7%, at $79.77 a barrel at 0547 GMT, while US West Texas Intermediate (WTI) crude lost 63 cents, a 0.8% drop, to trade at $76.15.
The U.S. consumer spending was flat in March, as an increase in outlays on services was offset by a decline in goods.
However, persistent strength in underlying inflation pressures could see the Federal Reserve raising interest rates again.
The Fed is expected to increase interest rates by another 25 basis points this week.
The U.S. Central Bank has raised its policy rate by 475 basis points since March of last year from the near-zero level to the current 4.75%-5.00% range.
