Oil prices slide on Fed rate hike expectations, weaker China PMI

Oil prices fell on Monday as jitters over the prospect of the US Federal Reserve raising interest rates combined with weaker Chinese manufacturing data to erase earlier gains.

Brent futures for July delivery were down 55 cents, or 0.7 per cent, at $79.78 a barrel at 0009 GMT, while US West Texas Intermediate (WTI) crude lost 54 cents, also a 0.7 per cent drop, to trade at $76.23.

US consumer spending was flat in March as an increase in outlays on services was offset by a decline in goods, but persistent strength in underlying inflation pressures could see the Federal Reserve raising interest rates again.