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Oil fell on Tuesday as the market waited to see if oil exports to the Kurdistan Region of Iraq would resume, which could ease supply tightness caused by the OPEC+ cut, while China's faltering economy continued to dampen the global demand outlook.
Brent crude fell eight cents to $84.38 a barrel, and US West Texas Intermediate crude fell seven cents to $80.65 a barrel by 0241 GMT.
The WTI contract, which expires in September, fell 8 cents to $80.04 a barrel.
Reuters quoted a source in the office of Iraqi Oil Minister Hayan Abdul-Ghani as saying: The Iraqi Oil Minister, Hayan Abdul-Ghani, arrived in the Turkish capital, Ankara, to discuss several issues, including the resumption of oil exports through the Ceyhan oil port.
Turkey stopped Iraq's exports of 450,000 barrels per day through the Kurdistan Region-Turkey pipeline on March 25, after an arbitration ruling issued by the International Chamber of Commerce.
The entry of more Iraqi crude oil into the market could help ease the sour crude supply crisis as the Organization of the Petroleum Exporting Countries and its allies (OPEC +) extend and deepen production cuts.
Meanwhile, gloom over the economic outlook in China, the world's second largest oil consumer, continued to pressure oil prices and increase concerns about fuel demand.
On Monday, China's central bank cut its one-year lending rate only moderately, disappointing a market that had expected more aggressive stimulus steps amid a rapid loss in economic momentum.
"China's economic weakness affects oil prices and will cap them this year, especially as Beijing appears committed to avoiding large-scale fiscal stimulus," the Eurasia Group said in a note.
JPMorgan analysts estimated that growth in global demand for mobility fuels slowed to 0.6 million barrels per day on an annual basis for the reference week ending August 12.
They said that year-to-date, with China's primary influence out of the numbers, demand growth for mobility fuels has dropped to 1.6 million barrels per day compared to the same period last year.
A preliminary poll conducted by "Reuters" agency showed that US crude oil and gasoline inventories are expected to decline last week, in order to reduce oil prices, while the American Petroleum Institute is scheduled to issue data later on Tuesday.
The Energy Information Administration, the statistical arm of the US Department of Energy, is due to release its own data on Wednesday.
The market is also focused on preliminary US PMI data for August and the Federal Reserve's annual Jackson Hole economic symposium scheduled for later this week.
US economic data in recent weeks has reinforced expectations that the Federal Reserve will keep interest rates high for a longer period, dampening the outlook for demand for oil and a wide range of consumer goods.
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