Oil prices fell on Wednesday, with Brent dropping by more than $1 after the United States said it would consider requests for waivers from sanctions due to snap back into place on Iranian crude exports.
Brent crude futures were down $1.10, or 1.4 percent, at $77.76 a barrel by 0112 GMT. U.S. crude was down 68 cents, or 0.9 percent, at $73.43.
Both contracts had posted gains earlier in the previous session after industry data showed inventories fell more than expected last week in the United States.
US Secretary of State Mike Pompeo said Washington will consider requests from some countries to be exempted from sanctions it will put into effect in November to prevent Iran from exporting oil.
Efforts by the Organization of the Petroleum Exporting Countries (OPEC) and other producers have led to a tighter oil market after a persistent glut.