Global oil markets experienced a minor dip in prices on Tuesday amid anticipation of news regarding a potential restart of Iraqi oil exports. Brent crude decreased by 8 cents to hit $84.38 per barrel, and U.S. West Texas Intermediate crude saw a 7-cent drop, reaching $80.65 a barrel.
Analysts Brian Martin and Daniel Hynes from ANZ Bank observed that “Crude oil struggled to keep its head above water on signs of supply tightness easing.”
Iraq’s Minister of Oil, Hayan Abdel-Ghani, traveled to Ankara for discussions, including the possible resumption of oil exports through the Ceyhan oil terminal. This move could help alleviate supply constraints, especially given the extended production cuts by OPEC+.
However, concerns linger about the weakening Chinese economy, the world’s second-largest oil consumer. The People’s Bank of China’s modest lending rate cut led to worries about global fuel demand.
J.P. Morgan analysts indicated a slowdown in global demand growth for mobility fuels, with China’s base effect no longer contributing to the numbers.
On the supply side, the potential restart of oil exports through the Ceyhan oil terminal could counterbalance the impact of OPEC+ production cuts on supply constraints.
Despite these factors, declines in U.S. crude oil and gasoline inventories are anticipated, providing some support to oil prices.
The market’s focus is also on U.S. economic data, the Federal Reserve’s annual economic symposium, and preliminary U.S. August PMI data for insights into future dynamics in the oil market.