Oil prices settled below $60 a barrel for the first time in three months Monday, as forecasts calling for warmer weather sparked a wave of selling.

Earlier in the month, the market had moved lower on signs of weakening gasoline demand following a summertime spike in pump prices.

Light sweet crude for December fell $1.46 to settle at $59.76 a barrel on the New York Mercantile Exchange, the lowest close since July 28.

The Energy Department said Monday that retail prices for regular unleaded fell 12.3 cents last week to average $2.48 per gallon, or 45 cents higher than last year. Pump prices are highest on the West Coast, averaging $2.71 per gallon, and cheapest in the Midwest, averaging $2.33 per gallon.

“The market has been spooked by warm weather,” said analyst Phil Flynn, of Alaron Trading Corp. in Chicago.