Rising Prices Cuts U.S. Gasoline Demand

Soaring gasoline prices chopped total U.S. petroleum deliveries in July by 3 percent, the largest such drop in 3 1/2 years.

That 3-percent drop was driven primarily by a 0.8-percent decline in gasoline deliveries, the American Petroleum Institute reported Wednesday in its monthly statistical report on the U.S. energy industry.

For the year, gasoline deliveries have been nearly flat, unlike 2004 when gasoline deliveries had risen nearly 2 percent, the API said.

Gasoline inventories fell in July below 210 million barrels for the first time since October, ending July at 208.5 million barrels, slightly below the recent-year average for the first time this year.

Imports of gasoline last month were more than 1 million barrels per day for the third time this year at 1.08 million barrels per day — but were about 7 percent lower than July 2004.