A Reuters report noted that on Tuesday, crude oil futures were down for the fifth consecutive day, to reach their lowest price in 11 weeks. The wire service added that gasoline futures have fallen for four consecutive days to hit an eight-month low.
Last week, the American Petroleum Institute cited the ongoing weak demand for gasoline as a by-product of an economy that remains very shaky despite general expectations that a recovery is underway. According to the organization, U.S. gasoline deliveries for July stood at 9.3 million barrels a day, down 0.03 percent from the same month in 2009.
“With unemployment high and July regular gasoline prices more than 20 cents a gallon above those a year ago, consumers likely have been shopping and vacationing less and trimmed their gasoline purchases accordingly,” said API Chief Economist John Felmy.
If the economy does enter into a double-dip recession, commodities like natural gas and crude oil will likely see further downward price pressure because of diminished demand from industrial customers as well as consumers.
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