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Worries of excess supply weighs on prices (Brent: $49.0)

Oil prices dropped around 3-4% yesterday as weak Chinese data sparked demand worries. Also weighing on prices was comment from Iranian nuclear negotiator yesterday that Iran is ready to boost oil production by 500,000 bpd as soon as sanctions against the country are lifted - which the country hopes will be late this year. The country’s oil production has around halved since sanctions were implemented years ago. Read more about our expectations for timing of increased oil from Iran in our Quarterly Outlook.

Tomorrow, OPEC and non-OPEC oil producers will meet in Vienna for talks on the oil market. Expectations to an agreement on curbing output are low; Saudi Arabia last week repeated its statement that "the market decides on prices". Next OPEC meeting is due on 4 December.

Except for this U.S. housing data this afternoon, there are no major economic data market movers coming up today - markets are awaiting Thursday’s ECB meeting and next week's Fed meeting.

Tonight, the weekly oil stocks data from the American Petroleum Institute will be followed closely, ahead of tomorrow's official EIA inventory report. Expectations are builds in crude, draws in distillates and gasoline inventories.