Oil prices fell by $1 a barrel Monday despite expectations of higher demand and OPEC production cuts. Mild weekend weather in the Northeast sapped demand for home-heating fuels.

Oil prices have tumbled from a July high above $78 a barrel, trading in a range of $57-$61 over the past five weeks. On Monday, traders took profits after a price leap above $61 last week.

On Monday, light sweet crude futures declined by $1.01 to settle at $58.58 a barrel on the New York Mercantile Exchange. December Brent crude on London's ICE Futures exchange slid 66 cents to settle at $59.05 a barrel.

The market was still digesting a monthly report released Friday by the International Energy Agency, in which it trimmed its outlook for 2006 global oil demand growth to 1.1 percent from 1.2 percent. Demand growth for 2007 held at 1.7 percent.

Still, the IEA also forecast a 2.6 percent jump in fourth-quarter global energy demand, citing high consumption in the United States. The agency noted U.S. consumption was being compared with figures when the impact of Hurricane Katrina and mild weather curbed demand a year ago.

And the IEA said demand for oil from the Organization of Petroleum Exporting Countries was expected to rise 1.6 million barrels a day because of lower output from non-OPEC countries.

The outlook points to tighter market conditions and higher prices just as OPEC oil production cuts announced in late October are going into effect.

"The market is likely to remain tight, due to the recent cut in OPEC supplies, and still relatively strong demand, which could lead to a decline in inventories," said Vienna's PVM Oil Associates.

Heating oil futures fell 3.66 cents to settle at $1.66 a gallon on the Nymex, while unleaded gasoline futures fell 2.57 cents to settle at $1.537 a gallon. Natural gas futures slipped 10 cents to settle at $7.894 per 1,000 cubic feet.