Oil slips on scepticism over US-China trade deal impact, Iraq exports rise

Core Insights - Oil prices have declined over 1% due to skepticism regarding the immediate impact of a U.S.-China trade deal on oil demand and confirmation that an oilfield fire in Iraq did not affect exports [1][2] - The Brent crude futures fell to $65.70 per barrel, while U.S. West Texas Intermediate crude futures dropped to $61.26 per barrel [1] Oil Market Dynamics - Market participants express skepticism about trade deals translating into immediate oil demand, contrasting with the more optimistic outlook in equity markets [2] - Concerns over weak demand have pressured oil prices, with Brent reaching its lowest level since May earlier this month, although renewed sanctions on Russia and stronger-than-expected U.S. demand have provided some support [3] - Iraq, as OPEC's largest overproducer, is negotiating its production quota while the fire at the Zubair oilfield did not impact its oil exports [4] Recent Price Movements - Last week, Brent and WTI crude prices increased by 8.9% and 7.7% respectively, driven by U.S. and EU sanctions on Russia [5] - OPEC and its allies have reversed previous production cuts to regain market share, which has contributed to stabilizing oil prices [4]