Brent loses over 2% on concerns about Chinese demand

International benchmark Brent crude lost over 2% in European trade today, resuming losses after a two-day hiatus off four-week lows. 

The decline comes amid renewed concerns about Chinese demand following disappointing manufacturing data, which showed an unexpected shrinkage in April.

Brent Today

Brent tumbled 2.2% to $78.33 a barrel, with a session-high at $80.20, after rising 2.6% on Friday, the second profit in a row away from four-week lows at $77.40 a barrel. 

Crude tumbled 1.5% last week, the second weekly loss in a row on concerns about global recession and its impact on fuel demand while Russian crude exports climbed in April. 

Chinese Demand 

Recent Chinese data showed a surprise decline in manufacturing activities in April, sparking concerns of a recession in the world's second largest economy.

China's manufacturing PMI fell to 49.2 in April from 51.9 in March, missing estimates of 51.4.

The Dollar

The dollar index rose 0.3% on Monday for the third straight session against a basket of major rivals, in turn pressuring commodity and metal prices. 

Such gains came ahead of the Federal Reserve's policy meeting tomorrow, expected to end with a 0.25% rate hike to 5.25%, the highest since mid-2007.