Light, sweet crude for July delivery dipped to US$122.30 barrel on the New York Mercantile Exchange - the lowest settlement since May 6. Oil prices have dipped to US$122 a barrel on release of data by the Energy Department indicating a drop in gasoline demand by 1.4% over the last four weeks. Retail gas prices have risen to a new record above $3.98 a gallon, even as gasoline inventories rose by 2.9 mln barrels last week, more than three times the expected increase. Sky-high diesel prices have increased the price of food and other goods carried via truck, train and ship. Prices of other types of fuel, including jet fuel, also have spiked, gravely impacting the American Airline industry.
Demand is also expected to drop as seen exacerbated by the EIA report and by steps taken by India and Malaysia to cut fuel subsidies. Subsidy cuts are expected to throttle demand for fuel in the developing world.
05-Jun-08 
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