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Crude oil futures end deeply in red on worries about outlook for energy demand

02 May 2023 Evaluate

Crude oil futures ended deeply lower on Monday on concerns about economic growth and worries about outlook for energy demand. Data showing a contraction in Chinese manufacturing activity and a potential interest rate hike by the Federal Reserve weighed as well. Data released by the National Bureau of Statistics over the weekend showed the Purchasing Managers' Index (PMI) for China's manufacturing sector came in at 49.2 in April, down from 51.9 in March. The Federal Reserve, scheduled to announce its monetary policy on Wednesday, is widely expected to raise interest rate by 25 basis points.

Benchmark crude oil futures for June delivery fell $1.12 or 1.5 percent to settle at $75.66 a barrel on the New York Mercantile Exchange. Brent crude for July delivery dropped $1.02 or 1.3 percent to settle at $79.31 a barrel on London's Intercontinental Exchange.