In a previous post, I mentioned that the price of gasoline was due to the high demand of oil throught the world. I even suggested that, in order to bring the price of gas down, we would have to increase supply by finding other sources of the crude, since the demand of oil would only increase. But a report today by the US Energy Information Administration suggests otherwise.
The AP reports (via Yahoo! News):
The‘s weekly inventory report said Wednesday that overall consumption of oil and its products fell 3.2 percent over the last four weeks compared with the same period last year. Demand for gasoline fell 1 percent during the same period.
In light of this news, the price of oil dipped below $100 a barrel for the first time since March 5th. So it looks like Adam Smith was right, and I was wrong…