Monday, June 23, 2008

More Support For Lower Oil Prices

Ah it seems Americans are finally hitting the wall when it comes to gas prices.

The lower gasoline consumption is probably due largely to less driving. According to Department of Transportation statistics released last week, from November through April, Americans drove 30 billion fewer miles than the same period the prior year. "That's the sharpest drop in recorded history, some 66 years of collecting data," says Doug Hecox, a spokesman for the Federal Highway Administration in Washington, adding that "the drop took place before the price hit $4 a gallon."

So less demand should lead to lower prices now that more supply is coming online. It is interesting to see what event is going to pop the bubble.

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