Fuel shock threatens permanent dent in demand

NEW YORK (Reuters) – The high price of crude oil has brought more than just a 1970s-style gasoline shock to U.S. motorists — it may have triggered a 1970s-style slowdown in fuel use that could linger even if prices fall.

Gasoline demand in the world’s biggest consumer is on track for its first annual decline in almost 30 years as high pump prices and an economic slump lead Americans to cut road travel, carpool, and buy smaller, more fuel efficient cars.

The drop in fuel consumption has been cited as the main reason crude futures slid more than 20 percent since mid-July — begging the question of how quickly demand could return if prices keeping dropping.

Reuters