Fuel oil below 80 dollars again

Crude oil prices have fallen below 80 US dollars in the global market. Global benchmark Brent fell 61 cents and West Texas Intermediate (WTI) fell 63 cents on Monday (May 1). Experts believe that the oil market is headed lower due to the possible increase in interest rates by the Federal Reserve Bank in the United States and weak production indicators in China.

Both Brent crude and WTI were down 0.8 percent at 3:13 a.m. GMT (9:13 a.m. Bangladesh time) on Monday, Reuters reported. On this day, Brent is selling at 79.72 dollars per barrel and the price of WTI stands at 76.15 dollars per barrel.

US consumer spending was largely normal in March. However, the US Federal Reserve is expected to raise interest rates again in the context of reduced demand for products due to inflationary pressure.

ANZ Research said in a client note that aggressive action by the Fed could put pressure on energy and metals markets.

The Federal Reserve is expected to raise interest rates by another 25 basis points this week. The US central bank has raised the policy rate by 475 basis points since March last year from near zero to the current range of 4.75 percent to 5 percent.

On the other hand, China's Manufacturing Purchasing Managers' Index (PMI) fell below 50 points in March. According to the country's official data last Sunday, China's PMI point dropped from 51.9 to 49.2.

Japan, the world's third-largest economy, also saw a slowdown in business. The country's factory output contracted for the sixth consecutive month in April.

Investors are generally cautious amid mixed economic signals, ANZ notes. Brent crude has been trailing the broader market in recent sessions. Data from several economies added to the uncertainty.

Earlier, most oil prices were up 2 percent last Friday after energy companies released positive earnings data.

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