Oil continues to decline

Oil prices continued their decline on Wednesday, after falling nearly five percent in the previous session to a five-week low, while investors await more rate hikes this week.

Brent crude futures fell 13 cents, or 0.2 percent, to $75.19 a barrel by 0015 GMT, while West Texas Intermediate crude fell 13 cents, or 0.2 percent, to $71.53.

The two benchmarks closed at their lowest since March 24 in the previous session, in which they also recorded the biggest one-day percentage drop since early January.

The Federal Reserve is expected to raise rates by 25 basis points on Wednesday to curb inflation, and the European Central Bank is expected to raise rates at its regular meeting on Thursday.

Further rate hikes could slow economic growth and undermine energy demand.

Energy prices are also under pressure after Chinese data over the weekend showed an unexpected drop in manufacturing activity in April. China is the world’s largest energy consumer and largest buyer of crude oil.