U.S. government data released on Wednesday indicated that the domestic supply of gasoline rose for the third straight week amid stagnating demand, growing by 1.3 million barrels last week. While that is 3.5% below year-ago levels, it comes at a time when gasoline consumption appears to have stagnated. A sell-off triggered by rising gasoline supplies in the US and concerns that high oil prices have weakened demand, has caused a dip in oil prices. Light, sweet crude for June delivery fell to US$68.52 a barrel on the New York Mercantile Exchange.
However, the actual gasoline demand situation in the U.S. will be clear only when the summer driving season sets in. The peak demand season usually begins with the Memorial Day holiday, which this year falls on May 29.
18-May-06 
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