Oil extends declines after falling over 1 in previous session
China39;s April manufacturing activity sees surprise fall
U.S. Fed expected to raise interest rates by 25 bps

May 2 Reuters Oil prices fell in Asian trade on Tuesday, extending losses seen in the previous session, as weak economic data from China and expectations of a U.S. interest rate increase weigh on the market.

Brent crude was down 0.3, or 24 cents, to 79.07 a barrel by 0615 GMT, while U.S. West Texas Intermediate WTI crude fell 0.3, or 25 cents, to 75.41 a barrel. Both benchmarks fell by more than 1 in their last session.

The downside pressure on oil is that China39;s economic recovery is not really promising, clouding the demand outlook on fuel consumption, said Tina Teng, an analyst at CMC Markets.

China39;s manufacturing activity unexpectedly fell in April, official data showed on Sunday, the first contraction since December in the manufacturing purchasing managers39; index.

China39;s industrial and economic recovery from the coronavirus pandemic was expected to boost demand this year.

Despite China39;s weak manufacturing data, there are positive signs of recovery based on spending during the fiveday Labour Day holiday in the world39;s largest oil importer, said analysts in an ANZ Research note.

State broadcaster CCTV said that major retail and catering companies have seen sales jump 21 yearonyear, based on Ministry of Commerce data. A record 19.7 million railway trips were made across the…