Processing Magazine

Oil prices fall on poor demand

December 10, 2009
Oil prices have hit two-month lows as government data showed that energy demand continues to slump, reports the Associated Press. The Energy Information Administration said the nation''s consumption of petroleum products fell to its lowest level since the week of July 10. Demand for gasoline in the U.S. has been hit so hard by the economic downturn; imports are falling away and helping to drive up the amount of unused fuel in storage. Imports over the past four weeks are down 1.4 million barrels a day compared with last year. That is significant because a gallon of gas was well below $2 per gallon at this time last year, meaning little incentive to ship gas to the U.S. As a result, more than 7 million barrels of gasoline have been pumped into U.S. stockpiles in the past three weeks, according to the EIA report.