LONDON (SHARECAST) - Crude oil futures slipped 1.5 per cent on Monday as buyers lost their nerve amid weak stock markets and persistent concern about the demand outlook.
Crude for November delivery lost $1.32 to settle at $88.73 a barrel on the New York Mercantile Exchange after trading at a low of $88.20 earlier in the session. The November contract expired at the end of Monday's session.
The new December front-month contract settled 1.8% lower at $88.65 a barrel.
US stocks settled only just in the blue on Monday, after a late surge, however trading was volatile ahead of corporate earnings later in the week.
Focus also turned to the Keystone pipeline, which was due to re-open on Monday easing fears about reduced supplies.
Most notably, concern about weak oil demand outweighed tensions in the Middle East despite Lebanon becoming the latest nation to suffer unrest after a Lebanese intelligence officer who had voiced his opposition to President Bashar al-Assad's was, along with several other civilians, killed in a huge car bombing in Beirut on Friday.
Despite fresh violence in the Middle East, fears about the weak global outlook and soft demand dominated the session.
Brent crude on the ICE Futures exchange recently fell 83 cents to $109.31 a barrel.
Among precious metals gold snapped recent declines to register decent gains as investors gear up for the Federal Reserve meeting.
Gold for December delivery rose $2.30 to settle at $1,726.30 on ounce on the Comex division of the New York Mercantile Exchange.
Silver for December delivery advanced 16 cents to settle $32.25 an ounce.