Futures on US West Texas Intermediate Crude Oil were trading slightly lower on Tuesday, as market players awaited more clarity on the possible resumption of Iraqi oil exports, which could alleviate supply tightness.
Iraq’s oil minister Hayan Abdel-Ghani is expected to discuss several matters, including the resumption of oil exports via the Ceyhan oil terminal, in Ankara.
In March, Turkey halted Iraq’s 450,000 barrels per day of exports via the northern Iraq-Turkey pipeline following an arbitration ruling by the International Chamber of Commerce.
More Iraqi oil entering the market would help ease tighter supply after OPEC+ sizable output cuts.
Meanwhile, bleak Chinese economic outlook continued to weigh on the oil market, raising concerns over fuel demand.
Yesterday China’s central bank cut its 1-year lending rate by 10 basis points and kept its 5-year lending rate intact.
Investors had expected more decisive stimulus measures as the world’s number two economy is rapidly losing steam.
“China’s economic weakness is weighing on oil prices and will create a ceiling for them this year, especially as Beijing appears committed to avoiding large-scale fiscal stimulus,” Eurasia Group analysts wrote in an investor note, cited by Reuters.
As of 7:23 GMT on Tuesday WTI Crude Oil Futures for October delivery were edging down 0.12% to trade at $80.02 per barrel.
At the same time, Brent Oil Futures for October delivery were losing 0.21% on the day to trade at $84.28 per barrel.
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