According to Reuters, international benchmark Brent crude oil futures LCOc1 fell to $83.26 per barrel in early trades, down 90 cents, or 1.1%, from their last close.
US West Texas Intermediate (WTI) crude futures CLc1 were down 54 cents, or 0.7%, at $73.80 a barrel.
A US government official said on Friday that the country could consider exemptions for nations that have already shown efforts to reduce their imports of Iranian oil.
Traders said ongoing concerns that the US-Chinese trade war could slow down economic growth also weighed on crude on Monday.
Saudi Arabia also has claimed to replace any potential shortfall from Iran and Reuters reported that as another reason for price drop of crude oil.
But Innes warned that limited spare production to deal with further supply disruptions meant “the capacity is quickly declining due to Asia’s insatiable demand.”
The US oil drilling rig count fell for a third consecutive week, as rising costs and pipeline bottlenecks have hindered new drilling since June.
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