SINGAPORE, May 13 Reuters Oil prices extended declines on Monday amid signs of weak fuel demand and as comments from U.S. Federal Reserve officials dampened hopes of interest rate cuts, which could slow growth and crimp energy use in the world39;s biggest economy.

Brent crude futures slid 7 cents, or 0.1, to 82.72 a barrel by 0624 GMT, while U.S. West Texas Intermediate crude futures were at 78.21 a barrel, down 5 cents.

Oil markets shrugged off the impact of the Middle East conflicts and shifted their attention to the world economic outlook again, Aucklandbased independent analyst Tina Teng said.

China39;s producer price index PPI contracted in April, suggesting that business demand remained sluggish, she said, adding that recent U.S. economic data signalled a slowdown as well.

Both benchmarks settled about 1 lower on Friday as Fed officials debated whether U.S. interest rates are high enough to bring inflation back to 2, offsetting gains earlier last week over concerns of supply disruptions from the IsraelGaza conflict.

Analysts expect the U.S. central bank to keep its policy rate at the current level for longer, supporting the dollar. A stronger greenback makes dollardenominated oil more expensive for investors holding other currencies.

Oil prices also fell amid signs of weak demand, ANZ analysts said in a note, as U.S. gasoline and distillate inventories rose in the week ahead of the start of the U.S. driving season.

Refiners globally are struggling with…