Oil prices erase gains on weak demand concerns

Oil drilling rigs

Oil prices erased early gains today, Oct. 16, after the Organization of the Petroleum Exporting Countries and the International Energy Agency cut their forecasts for global oil demand growth, with consumption slowing in China.

Brent crude futures for December delivery settled at $74.22 a barrel, after touching $74.93.

Meanwhile, WTI crude futures for November delivery fell 0.25%, or 19 cents, to $70.39 a barrel, after touching $71.31.

“On the demand side, market participants are looking for clearer signals regarding China’s fiscal policy, as uncertainty over its economic recovery weighs on the oil demand outlook,” Christopher Tahir, Chief Market Strategist at Exness, told MarketWatch.

The American Petroleum Institute's report on oil inventories is expected later today, and the US Energy Information Administration is scheduled to release official inventory data on Oct. 17, amid expectations of a 1.8 million barrel increase in crude inventories.