With U.S. sanctions on Iran coming into effect on November 4, the global oil trade will surely feel the impact.
Front-month Brent crude oil futures were at $75.82 a barrel at 0656 GMT, down 35 cents, or 0.5 percent, from their last close.
Referring to the significance of oil market stability he said, "Stability in world oil market is in favor of U.S. Any increase in oil market directly affect energy security in the U.S".
There have been concerns about an economic slowdown worldwide partly because of trade disputes between the US and China, the world's two largest economies.
"Oil is dropping because of more concern about what's happening in the stock market", said Phil Flynn, an analyst at Price Futures Group.
U.S. West Texas Intermediate (WTI) crude futures rose 26 cents, or 0.4 per cent, to end at $67.59 a barrel. "If we're not careful, we could have a repeat of 2008 when oil prices started at $90 a barrel, went up to $140 and ended around $30", he said.
But, given the bullish outlook for crude after the Iran oil export sanctions become effective, auto fuel will again jump higher in price, which for 9 consecutive days has seen a fall in some of the major Indian cities.
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That's higher than what many economists had been projecting, but lower than the 4.2 percent rate of growth in the second quarter. Toyota Motor Corp. gave up 2.1 percent while Hong Kong-based retail supply chain giant Li & Fung Ltd. lost 2 percent.
Oil tumbled for a third straight week as crumbling equity markets across the globe stoked concern about a slowdown in energy demand growth.
US commercial crude oil stockpiles rose for a fifth consecutive week last week, increasing by 6.3 million barrels to 422.79 million barrels, the Energy Information Administration said on Wednesday.
Washington has said it wants to reduce Iranian oil sales to zero, although this looks unlikely. The crude oil was already under the pressure after energy minister of Saudi Arabia tried to fulfill all the worldwide demand of crude by assuring them.
Meanwhile, U.S. production is soaring, boosted by technological advances that have enabled drillers to tap shale formations, with output this year forecast to overtake the previous annual record in 1970.
"Of particular note, the crude markets had been trading in what is known as contango for over a year and just last week, finally moved into a normal backwardation mode, where the front months are trading a lower prices than the back months, which represents a healthier, price level", Thorpe added.
Saudi Arabia's OPEC governor said on Thursday, that the oil market could face oversupply in the fourth quarter.