Phil Streible, senior market strategist at RJO Futures, told Bloomberg television that, "One would expect with the Dow Jones up over 200 points we would expect oil prices to rebound; the fact they haven't really tells you two different things are going on, one there's been a sector rotation out of the oil market and oil looks to continue its path lower".
Later, 280,000 barrels were traded in IRENEX at $74.85.
The administration of US President Donald Trump is preparing to launch a series of sanctions against Iran from November 4 in which a universal ban on the country's oil exports appears to be a primary objective.
Even with US sanctions on Iranian exports due to begin on November 4, oil prices have fallen roughly $10/Bbl since four-year highs were hit in early October.
The U.S. sanctions on Iran have been putting Iraq in a tight spot-on the one hand, Baghdad's trade is closely linked with its neighbor Iran, but on the other hand, the United States is an ally that helps with security.
EIA also forecast WTI prices to increase at a slightly slower rate, leading to a widening of the Brent-WTI spread to 9 dollars per barrel in October.
Trump said he would like to make a deal now but that China was not ready.
The International Energy Agency (IEA) said on Tuesday high oil prices were hurting consumers and could dent fuel demand at a time of slowing global economic activity.
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However, U.S. equities rebounded strongly on Thursday, with the Nasdaq Composite Index jumping about 3 percent in late trading, soothing anxious investors to some extent. "If Americans could halt Iran's oil exports, its price would hit $100 per barrel", he added.
That has set off a scramble by some of Iran's biggest energy buyers, including China and USA allies such as India and Turkey, to either get around the US sanctions or make up the shortfall elsewhere. However, oil futures lost about 2.4% in the week, settling lower for a second straight week.
Around 300,000 bpd of crude oil previously pumped and exported in the Kirkuk province to the Turkish port of Ceyhan have been shut in since the Iraqi federal government moved in October past year to take control over the oil fields in Kirkuk from Kurdish forces.
The second round of US sanctions reimposed by president Donald Trump in May kick in on November 4.
Because of the concerns about possible shortage of supply due to USA sanctions on Iran, the oil market is also beginning to be anxious about possible oversupply and inventories that are rising in many other parts of the world.
Oil was also being weighed down by signs of rising supply from top producers.
Oil prices fell on Tuesday, depressed by concerns that the U.S.
Meanwhile, the market will focus on the news of any meeting between officials from China and the United States aiming at seeking solution to the ongoing trade tensions.