Benchmark Brent crude oil LCOc1 fell by $2.25 a barrel to a low of $75.09 before recovering slightly to around $75.50, down $1.84, by 1345 GMT.
Brent has fallen by over 12 percent since the beginning of October, while WTI has lost more than 13 percent in value. Continued escalation of tensions between US & Saudi Arabia and reports of US EIA that crude oil inventories saw increase in stockpile for 5 consecutive week greatly impacted crude oil price action and resulted in steep bearish decline.
The American Petroleum Institute is due to release its weekly USA oil inventory report Tuesday at 4:30 p.m. EST, which is available only to subscribers.
On Tuesday, U.S. oil prices further dived 4.22 percent as Saudi Arabia vowed to enhance oil production and U.S. stock markets sank on disappointing earnings reports.
Oil prices are falling again, Friday, as concerns over short-term supply worries ease, despite the United States sanctions imposed on Iran.
Oil has been caught in the global financial market slump this month, raising concerns about global oil demand. Ultimately, this is a market that is testing a major support level, and even though we pierced that level, by the end of the day it looks like the buyers are quite ready to give up.
US production hit an all-time high of 11.3 Mmbpd in August, according to the Energy Information Administration's first reading of monthly data released Thursday.
U.S. monthly crude oil production exceeded 11 million barrels per day (b/d) in August 2018, making the country the leading crude oil producer in the world, the U.S. Energy Information Administration (EIA) said on Thursday.
On Sunday, sanctions against Iran exports are scheduled to go back into effect.
US sanctions on Iran's energy exports come into force on November 4 and it is still unclear how much the country's roughly 3.8 mln bpd production will be affected.
Investors will look to official government data on US inventories due on Wednesday. WTI picked up 0.26 dollar to settle at 67.59 dollars a barrel.
"There are two downward pressures on global oil demand growth".
Thus, the cost of the futures on Brent crude rose by 0.63%. While there are concerns that global demand could falter amid downbeat forecasts for economic growth, other factors are at play too. The U.S. surpassed Russian Federation in August to claim the title of world's top oil producer, with the largest year-on-year output increase in U.S. history.