LONDON--Oil prices fell Monday, clawing back Friday's gains as investors focused on the uncertain global economic outlook and its potential to dent oil demand.
The December Brent contract on London's ICE futures exchange was at $109.20, down 20 cents, or 0.2%. Nymex light, sweet crude for December delivery was down 14 cents, or 0.2%, to $85.92 a barrel on the New York Mercantile Exchange.
Data showed Japan's economy contracted 3.5% on quarter in annualized terms for the July to September period, shrinking at the sharpest rate since the aftermath of the massive earthquake and tsunami in early 2011.
Meanwhile, Iran said Friday it would return to talks next month with the International Atomic Energy Agency, allaying fears that the oil-rich country would cause a supply disruption.
"It seems that maybe, finally, some of the international pressure is starting to cause the Iranians to be more [ talkative]," said Christin Tuxen, senior analyst at Danske Research. "That is something that could weigh on oil prices going forward."
Simon Wardell, research manager at IHS Global Insight, said the words from Iran could help to cool prices, but investors are still more focused on the economic situation in China and Europe.
The ICE's gasoil contract for November delivery was up $2.75, or 0.3%, at $933.25 per metric ton, while Nymex gasoline for December delivery was up 13 points at $2.7005 per gallon.
