Thursday, October 2, 2008

Gas Prices Higher as Demand Drops 7%

The gasoline supply and demand relationship offered by House Republicans during their protest in dark House chambers took another hit. Demand for fuel dropped according to the Energy Department’s Energy Information Administration. MSNBC reported:

Fuel consumption for the four-week period ended Sept. 26 reached about 19 million barrels a day, down 7 percent from the same period a year ago, according to the EIA.

“The demand just isn’t there,” said Jonathan Kornafel, Asia director for market maker Hudson Capital Energy in Singapore. “The refineries aren’t buying crude to turn it into gasoline because consumers aren’t buying it on the road.”

Demand fell 7% from the same period last year, so prices dropped accordingly? They're nearly $1 per gallon higher. While the exact rise is 85 cents, it's a sharp needle to the Republican gas price balloon.