Oil prices erased earlier gains over global demand

Crude oil prices erased earlier gains, Monday, as the global energy crisis won’t require added crude demand for the rest of October due to warmer weather.

The Commodity Weather Group anticipates that the US will have warmer than normal weather for the remaining days of October.

Oil prices have been skyrocketing on expectations that colder weather and a natural gas shortage would lead to scrambling for alternative sources of energy, with crude being the preferred choice.

Two more weeks of warm weather will not bring about dramatic change in the crude oil market deficit that the U. S. economy encounters, however it will make it a little harder for Brent crude to hit the $90 level.

Crude prices could consolidate around the $80 level, with the $78 level providing modest support.