Oil prices fell this evening, extending a week-long losing streak as mild weather and a stronger US dollar affected prices. US crude fell 16 cents to $77.84 a barrel, while Brent crude dropped by 66 cents to $76.44.
US heating fuel demand is expected to be well below normal this week, according to the National Weather Service.
The Organisation of Petroleum Exporting Countries (OPEC) also said today that oil inventories were high enough to absorb any increase in winter fuel demand.
The group also cut its forecast for demand for its crude by 20,000 barrels per day (bpd) to 28.59 million bpd in its monthly report, while leaving its forecast for world oil demand growth unchanged at 820,000 bpd.
Last week, the US Department of Energy and the International Energy Agency, both trimmed their oil demand growth forecasts for 2010.
A stronger dollar also pressured oil prices, with the euro falling to a four-week low against the US currency. A rise in the value of the dollar often discourages investor interest in dollar-denominated commodities such as oil.
