On Friday, oil prices plunged around 6%, hitting a two-month low as a new variant of COVID 19 spooked investors and added to concerns that a supply surplus could swell in the first quarter.
Oil fell with global equities markets due to fears that the variant could hurt economic growth and fuel demand. Britain and the European states have been unable to travel from southern Africa, where the variant was detected.
By 1452 GMT, Brent crude fell $5.40, or 6.5%, to $76.82 a barrel.
U.S. West Texas Intermediate WTI crude was down $5.82, or 7.4%, at $72.57 a barrel after Thursday's Thanksgiving holiday in the United States.
Both contracts are heading for their fifth week of losses and their steepest fall in absolute terms since April 2020, when WTI turned negative for the first time.
Investors were watching China's response to the U.S. release of millions of barrels of oil from strategic reserves in coordination with other large consuming nations, part of its bid to cool prices.
According to a panel of experts, a release is expected to boost supplies in the coming months, an OPEC source said.
The Economic Commission Board expects to have a surplus of 400,000 barrels per day bpd in December, rising to 2.3 million barrels per day in January and 3.7 million barrels per day in February if consumer nations go ahead with the releases, the OPEC source said.
The forecasts affect the outlook for a Dec. 2 meeting of OPEC and its allies, known as the OPEC, when the group will discuss whether or not to adjust its plan to increase output by 400,000 barrels per day in January and beyond.
The initial assessment of the co-ordinated stockpile release and the sudden appearance of a new variant of the coronavirus raises serious concerns about economic growth and oil balance in the coming months, according to PVM analyst Tamas Varga.
Iran and the United States are in focus on Iran's production with indirect talks due to resume on Monday on the reviving of a 2015 nuclear deal that could lead to the lifting of U.S. sanctions on Iranian oil exports.
The failure of Iran and the International Atomic Energy Agency to reach an agreement on monitoring of Tehran's nuclear facilities this week bodes poorly for next week's talks, Eurasia analyst Henry Rome said.