Oil prices continued their two-week slide on Wednesday after a government report showed demand for crude products dropped even further from the weak levels of a year ago when the recession’s grip on the economy was strongest.
Benchmark crude for March delivery fell $1.38 to $73.33 a barrel on the New York Mercantile Exchange.
Wholesale prices for natural gas, heating oil and gasoline also tumbled.
Oil prices initially moved slightly higher after the Energy Information Administration reported a big decline in crude inventories last week. But once traders realized that foggy weather and high seas in the Gulf of Mexico, as well as an accident at a southeast Texas port, probably slowed deliveries and accounted for the drop, the focus turned to the lack of demand.
The EIA report showed demand for gasoline fell 0.8 percent over the four weeks ended Friday compared with a year ago and that demand for distillates used for heating oil and diesel fuel is off 8.1 percent.
In other Nymex trading in February contracts, heating oil fell 3.81 cents to $1.9127 a gallon, while gasoline dropped 3.99 cents to $1.9275 a gallon. Natural gas futures slid by 2.25 cents to $5.260 per 1,000 cubic feet.
In London, Brent crude for March delivery gave up $1.30 at $71.99 a barrel on the ICE Futures exchange. (AP)
