Crude Oil Declines as Record Prices Curb U.S. Fuel Consumption

(Bloomberg) — Crude oil fell more than $2 a barrel on signs that U.S. fuel consumption is dropping because of a slowing economy and record energy prices.

Home prices fell in March by the most on record, the S&P/Case-Shiller home-price index showed. U.S. motorists were forecast to make 1 percent fewer automobile journeys of at least 50 miles during last weekend’s Memorial Day holiday than a year ago, the AAA, the largest U.S. motorist group, said May 15.


“There’s trepidation at these prices levels,” said Phil Flynn, a senior trader at Alaron Trading Corp. in Chicago. “High energy prices are having a substantial impact on the economy and potentially on demand.”

Crude oil for July delivery fell $2.19, or 1.7 percent, to $130 a barrel at 9:23 a.m. on the New York Mercantile Exchange. Futures reached $135.09 on May 22, the highest since trading began in 1983. Prices have doubled over the past year.

Bloomberg