Crude oil futures failed to hold gains and settled flat on Tuesday, as traders reacted to a report from the International Energy Agency (IEA) that oil markets won't be as tight as expected this quarter.
Weak euro area GDP data and lingering concerns about global economic slowdown weighed on oil prices.
West Texas Intermediate Crude oil futures for December settled at $78.26 a barrel, unchanged from the previous close.
WTI crude futures climbed to $79.77 a barrel around mid morning after the dollar tumbled as soft inflation data helped ease concerns about the outlook for interest rates.
Brent crude futures were down $0.02 at $82.50 a barrel a little while ago.
The IEA said in its latest monthly report that that it anticipates a supply shortfall during the fourth quarter. But it will be roughly 30% smaller than previously projected, at about 900,000 barrels a day.
"World oil demand continues to exceed expectations. Yet world oil supply growth is also exceeding expectations as production growth in the U.S. and Brazil has been outperforming forecasts," the report said.
Traders now await weekly crude inventory data from U.S. Energy Information Administration (EIA). The agency will release data for the weeks ended November 3 and November 10, on Wednesday. The data is delayed due to a systems upgrade.
