NEW YORK, 20 March 2008 — Oil prices pulled back sharply yesterday after the government reported data that suggested that the high price of oil and gasoline are depressing demand for petroleum products.
The demand numbers in the Energy Information Administration’s weekly inventory report overshadowed data showing that supplies of oil grew less than expected last week, while gasoline and heating oil supplies fell.
Gas prices at the pump, meanwhile, slipped lower for the third day while diesel fuel rose to another record.
Overall consumption of oil and its products fell by 3.2 percent over the last four weeks compared to the same period last year, the EIA said. Demand for gasoline fell by 1 percent over the same period.
Light, sweet crude for April delivery fell $4.46 (2.84 euros) to $104.96 (66.89 euros) a barrel on the New York Mercantile Exchange. The April contract expires Wednesday, and trading was much heavier in the May contract. May oil futures fell $4.71 (3 euros) to $103.79 (66.14 euros) barrel on the Nymex.