After declining sharply early on in the session, crude oil futures regained lost ground and ended flat on Monday.
Oil prices declined after the United States said it is considering waivers on sanctions against Iran that will take effect on November 4.
However. prices came off lower levels amid reports about disruptions in oil production in the Gulf of Mexico due to hurricane Michael and news about explosion at a key oil refinery in Canada.
Crude oil futures for November declined to a low of $73.08 a barrel before recovering to close at $74.29 a barrel, down 5 cents from previous close.
On Friday, crude oil futures for November ended at $74.34 a barrel, gaining a penny.
According to reports, the U.S. administration is “in the midst of an internal process” of considering waivers for countries that are reducing imports of Iranian crude.
It is widely expected that Saudi Arabia will steadily increase production to compensate for the loss of Iranian oil from early November.
Traders were looking ahead to crude inventories data from American Petroleum Institute and Energy Information Administration.