NEW YORK -- Crude futures plunged more than 4 U.S. dollars a barrel Thursday on signs that high oil prices have put a curb on fuel consumption.
Light, sweet crude for July delivery dropped 4.41 dollars to 126.62 dollars a barrel on the New York Mercantile Exchange, the lowest settlement in two weeks and the biggest intraday price decline since March 19.
The average daily fuel consumption in the four weeks ended May 23 was 20.5 million barrels, 0.7 percent down from a year earlier, according to the U.S. Energy Department's weekly report released Thursday. Many analysts believe that the record high oil prices have prompted consumers to reduce fuel purchases.
Crude futures were also pressured from a rising dollar, which rose against the euro and the British pound Thursday.
The Energy Department's weekly report showed an unexpected fall of 8.8 million barrels in crude oil inventories, the biggest drop since September 2004. The report said the downfall was caused by tanker problems in the Gulf Coast, which has been troubled by heavy fog in recent months. The data sent oil prices surging to 133.12 dollars a barrel before retreating later.
In London, Brent crude for July delivery fell 4.04 dollars to settle at 126.89 dollars a barrel on the ICE Futures Exchange.
Light, sweet crude for July delivery dropped 4.41 dollars to 126.62 dollars a barrel on the New York Mercantile Exchange, the lowest settlement in two weeks and the biggest intraday price decline since March 19.
The average daily fuel consumption in the four weeks ended May 23 was 20.5 million barrels, 0.7 percent down from a year earlier, according to the U.S. Energy Department's weekly report released Thursday. Many analysts believe that the record high oil prices have prompted consumers to reduce fuel purchases.
Crude futures were also pressured from a rising dollar, which rose against the euro and the British pound Thursday.
The Energy Department's weekly report showed an unexpected fall of 8.8 million barrels in crude oil inventories, the biggest drop since September 2004. The report said the downfall was caused by tanker problems in the Gulf Coast, which has been troubled by heavy fog in recent months. The data sent oil prices surging to 133.12 dollars a barrel before retreating later.
In London, Brent crude for July delivery fell 4.04 dollars to settle at 126.89 dollars a barrel on the ICE Futures Exchange.
