A drop in demand of light, sweet crude oil drop prices for September delivery at $125.49

Americans used 2.4 percent less fuel over the past four weeks than they did last year, the latest figures by the Energy Department's Energy Information Administration show. While that may not sound like much, industry experts say it represents a significant shift by the world's largest energy consumer. A bigger-than-expected increase in gasoline supplies only added to concerns that drivers are cutting back.

At the gas pump, prices continued their retreat. The national average for a gallon of regular dropped more than a penny and a half to $4.026 a gallon, according to auto club AAA, the Oil Price Information Service and Wright Express. Retail diesel is down nearly half a cent to $4.788.

"We've grounded airplanes. People are driving less, they're trading in their SUVs," said James Cordier, president of Tampa, Fla.-based trading firms Liberty Trading Group and OptionSellers.com. "For the foreseeable future — at least for the next 6 to 12 months — we have demand destruction."

Cordier predicted prices could yet drop further, with oil possibly falling as low as $110 a barrel by September.

"People have changed their driving habits, and they're not going to change back anytime soon," he said.

Falling prices at the filling station reflect the concern of many energy traders that the weakening U.S. economy is hurting demand. Analysts say that is helping keep oil prices from racing back higher.

Oil tumbled $3.98 to settle at $124.44 a barrel, its lowest finish since June 4. Crude has fallen in six of the previous seven sessions, and is now trading nearly 15 percent below its peak above $147 a barrel earlier this month.

Natural gas fell after the Energy Department's Energy Information Administration said in its weekly report that natural-gas inventories held in underground storage in the lower 48 states rose by 84 billion cubic feet to nearly 2.4 trillion cubic feet last week.


By simply becoming more energy efficent you cause a gas prices to drop without new drilling. Stop giving big oil more money. Give up gas guzzlers, insulate your home for winter, keep your themostat at 65 degrees in the winter, 75 degrees in the summer.
Unplug your appliances (TV, A/C) when not in use. You pay less in energy costs and keep more in your pocket. The less demand, the lower the cost.

I keep saying it...if people send a VERY LOUD message when they stop spending.

I think it's the only thing the money mongers hear. Their bottom line...

woohooo, now I will be paying $4.14 a gallon