The price of oil fell to its lowest level in two months on Wednesday as evidence builds that the high cost of gasoline and other fuels is sapping demand.Next, the reports will be on the new technologies that arise because fuel prices are too high.
New data from the Energy Department show that fuel consumption over the past month declined by almost 3 percent compared with last year. Analysts attributed the trend to soaring pump prices and a slowdown in economic activity, particularly among Gulf Coast states that were affected by Hurricanes Katrina and Rita.
"Maybe there is some elasticity to petroleum demand after all," said analyst Andrew Lebow of Man Financial Inc. in New York. The decline in oil prices coincided with an even more pronounced selloff of gasoline futures, which Lebow attributed in part to momentum trading
Wednesday, October 05, 2005
Well, I always thought that higher prices would drive down demand: