The additional driver for the oil market was this morning’s report that reflected the decreasing factory activity in China, the world’s largest oil importer. Besides, it is reported that Iraq has agreed a deal with Kurds to resume crude oil exports through its pipeline to Turkey. So far, the market hasn’t reacted to the news, as many traders doubt the deal will be implemented immediately, while in the longer term it may become a signal for prices which tend to retreat on decreasing geopolitical tensions.
The market continues to closely monitor the USD dynamics while looking forward to the upcoming official weekly data from the U.S. Energy Information Administration EIA . Should the report show further increase in production, Brent could pull back to the recent lows and even test the $66 mark in case the crude oil and gasoline inventories rise as well.