West Texas Intermediate futures for October delivery slid to $44.51 (-0.27%), while Brent crude fell to $47.74 (-0.83%) amid weak demand.

The International Energy Agency said on Friday that the number of drilling rigs in the U.S. fell by 10 to 652 last week. The agency noted that persistent production cuts could rebalance the market in 2016. Nevertheless now oil oversupply and declines in global car sales (-1.0% y/y in August) continue to weigh on prices.

Kuwait set its October Official Selling Price for crude to Asia 60 cents below its September level. OPEC's monthly market report will be published later today.

Traders are also waiting for a Federal Reserve's policymaking meeting this week.