Who'd Thunk It?

Ummm...Smith, Hayek, Friedman, ... but not Waters,

Falling Demand

``Refiners are managing the crude supply they have on hand because they are worried about weak product demand,'' said Tim Evans, an energy analyst for Citi Futures Perspective in New York. ``Both gasoline and distillate demand over the last four weeks are down from a year ago.''

Fuel consumption averaged 20.4 million barrels a day in the four weeks ended June 6, down 1.3 percent from a year earlier, the department said.

U.S. gasoline demand increases during the summer, when Americans take to the highways for vacations. The peak- consumption period lasts from the Memorial Day weekend in late May to Labor Day in early September.

I think I remember those curves from econ 101. Let me see...supply went down and price went up. Price went up past a point and now demand is going down. Yup.

Hat Tip: Knowledge Problem