Gasoline demand drops as price rises

chart_ws_commodity_energy_oil.top.pngClick for more commodities data. By Charles Riley, staff reporter


NEW YORK (CNNMoney) -- Demand for gasoline, which has seen a price spike at the pump has dropped sharply, a government report revealed Wednesday.

Gasoline demand fell to 8.943 million barrels per day from 9.148 million a week ago, according to the U.S. Energy Information Administration.

Gasoline prices and taxes by state
Prices at the pump can vary widely among states due to a number of factors. More

That suggests Americans are adjusting their consumption habits as prices shoot through the roof.

The national average price for a gallon of gasoline rose about two cents from the previous day to $3.98. In the past week, the averageprice of gasoline has climbed about ten cents.

Meanwhile, crude inventories grew by 3.4 million barrels last week, while oil demand fell by 1.256 million barrels per day, the EIA report said.

After losing more than 2% in the previous session, oil for June delivery fell an additional $1.81 or 1.6% to settle at $109.24 a barrel Wednesday.

The drop in demand comes as the Institute for Supply Management also brought gloomy news, showing its reading on the services sector fell to an 8-month low in April.

That suggests economic activity in the United States might be slowing, which would lower demand for oil products. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.86%3.92%
15 yr fixed3.03%3.05%
5/1 ARM3.40%3.46%
30 yr refi3.94%3.98%
15 yr refi3.12%3.14%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 18,099.24 -104.13 -0.57%
Nasdaq 4,968.42 -11.48 -0.23%
S&P 500 2,098.67 -9.11 -0.43%
Treasuries 2.12 0.00 0.05%
Data as of 3:45pm ET
Company Price Change % Change
Bank of America Corp... 15.87 -0.12 -0.74%
Alcoa Inc 14.62 -0.56 -3.69%
Chesapeake Energy Co... 15.54 -0.66 -4.07%
Yahoo! Inc 44.19 1.57 3.68%
General Electric Co 25.64 -0.21 -0.83%
Data as of 3:30pm ET

Sections

Sen. Bill Nelson, the top Democrat on the Senate Commerce Committee, is calling for a federal investigation into Lumber Liquidators. More

China's new business friends can be found in Latin America, a region America once dominated. More

Mark Zuckerberg gave out many pieces of career advice during his live Q&A Wednesday from Mobile World Congress in Barcelona. More