Oil closes lower on demand concerns

Oil drilling rigs

Oil prices declined today, Oct. 24, amid concerns on demand in China following the latest economic data.

China's economy grew by 3.9% in the third quarter on an annual basis, exceeding expectations of 3.3%, but since the beginning of this year, the economy has grown by 3%, far below the official target of 5.5%.

China's imports of crude oil amounted to about 9.79 million barrels per day during September, and despite its increase from August, it was 2% lower than the same period last year, as independent refineries reduced production amid weak profit margins and a decline in demand.

Separate data showed that the composite Purchasing Managers' Index in the United States fell to 47.3 points in the preliminary reading for the month of October, compared to 49.5 points in September, recording the second-fastest pace of decline since 2009.

On the other hand, US Treasury Secretary Janet Yellen warned that there are risks to financial stability due to global volatility.

In terms of trading, Brent crude fell 0.3%, or 24 cents, to settle at $93.26 a barrel.

WTI crude declined 0.6%, or 47 cents, to reach $84.58 a barrel.