Crude oil futures settled almost flat on Monday, after spending most of the day in the red, as traders fretted about weak oil demand.

The spotlight initially turned to slowing global oil demand after the International Energy Agency cut its 2012 outlook for oil demand growth last week. The IEA also said it sees increased production from oil rich nations such as Iraq, Libya and the US.

Oil cartel OPEC also doused market fears about surplus supplies after it said it anticipates the oil markets to stay well supplied into next year.

Crude for November delivery fell 1 cent to settle at $91.85 a barrel on the New York Mercantile Exchange after a brief fall below $90 earlier in the session.

Oil prices managed to climb back above $90 as concern about escalating tensions in the Middle East brought buyers back in.

Meanwhile the European benchmark Brent crude finished up $1.18 at $115.80 a barrel on the ICE futures exchange.

Among precious metals gold nursed a 1.3% loss on Monday and hit an intra-day low of $1,729.70 as the dollar strengthened and US stock markets rallied.

Gold for December delivery declined $22.10 to settle at $1,737.60 an ounce, extending the previous session's decline.

Silver for December lost 93 cents at $32.74 an ounce while palladium for December delivery dropped $6.45 at $632.60 an ounce. January platinum tumbled $27 to $1,632.30 an ounce.


CJ

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