On Tuesday, oil prices dropped as the market anticipated the resumption of Iraqi exports through the Turkish port of Ceyhan. This could potentially alleviate the supply scarcity caused by OPEC cuts.
Brent crude dropped by eight cents to $84.38 per barrel, while US West Texas Intermediate crude dropped by seven cents to $80.65 per barrel.
A source from the office of Iraqi Oil Minister Hayan Abdul Ghani informed Reuters on Monday that the minister traveled to the Turkish capital, Ankara, to discuss various issues, including the resumption of oil exports via the port of Ceyhan.
Concerns about fuel demand increased as China’s economic outlook became pessimistic, putting pressure on oil prices as it is the world’s second largest oil consumer.
A Reuters poll indicated a predicted drop in US crude oil and gasoline inventories last week, mitigating the decline in oil prices.
The American Petroleum Institute will release inventory data on Tuesday, followed by the Energy Information Administration on Wednesday.