By around 1415 BST, the price of Brent Crude oil was 0.30% lower at $72.67 per barrel.
In the previous week ending October 19, WTI and Brent lost 3.7 percent and 1.2 percent, respectively, and WTI and Brent settled at 69.12 US dollars and 79.78 dollars per barrel, respectively, at the end of the week.
News of talks between Saudi Arabia and Kuwait to resume production in Partitioned Neutral Zone, whose output was around 500000 to 600000 BPD before it was closed, ended without any resolution drove crude oil price to weekly lows. The U.S. has agreed to let eight countries - including Japan, India and South Korea keep buying Iranian oil after sanctions kick in this weekend to prevent a spike in prices, a senior administration official said.
Saudi Arabia and Russian Federation have said they will pump enough crude to meet demand once the sanctions kick in.
That will offset the decline in Iranian exports that could tighten supply.More news: SRK Greets Thousands Of Fans Outside His Residence ‘Mannat’ On 53rd Birthday
Oil has been caught in the global financial market slump this month, raising concerns about global oil demand. Outcome of macro data from Key global markets and Sino-US trade talks proceedings will now decide the medium term price action direction.
Refinery crude runs rose by 149,000 barrels per day, EIA data showed. -China trade war kept pressure on the market. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell $1.16 to $65.88 a barrel, down 1.7 percent.
As sanctions take effect, buyers for Iran's crude will dry up.
Investors will look to official government data on US inventories due on Wednesday. Grisanti is watching for WTI to break above its 200-day moving average at $67.47 for a rebound.
On November 4, 2018, USA sanctions on Iran will begin and Washington has made it clear it expects for Iranian oil customers to stop buying.More news: Maulana Samiul Haq, considered `father of Taliban`, killed in Pakistan
The Organization of the Petroleum Exporting Countries (OPEC) boosted oil production in October to 33.31 million barrels per day (bpd), a Reuters survey found this week, up 390,000 bpd from September and the highest by OPEC since December 2016.
There's little doubt that much of the oil market's problems this month are tied to the broader sell-off in equities, which has seen investors shed risk assets like crude futures.
Adequate oil supply and an uncertain global economic outlook also dampened sentiment.
There are also signs of a slowdown in global trade, with container and bulk freight rates dropping after rising for most of 2018, according to reports.More news: Donald Trump, Xi Jinping eye G20 talks after ‘very good’ phone call