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Oil starts off the week lower on OPEC data, Brent and WTI closed $2.79/bbl and $2.53/bbl lower.

In its monthly report, OPEC mentioned that production had increased 110k barrels per day (bpd) to 31.57m bpd during the month of September. This is close to 2m bpd higher than the predicted demand for oil in 2016 of 30.82m bpd. They expect non OPEC supply to decline in order to reach equilibrium. They have signalled that no big changes should be expected.

We have weekly US crude oil inventory data out from the API later today. Taking a look at a poll taken by Reuters, we have expectations of a 2.85m bbl build, 0.06m bbl draw and 1.70m bbl draw in crude, distillate and gasoline inventories respectively.

Economic data scheduled to be released today include, German CPI & ZEW survey, Chinese producer/import prices, and UK CPI, core CPU and PPI. As mentioned yesterday, China has been in the spotlight over the past few months and as such, the data will be watched closely. Volatility in prices can be expected.