Oil tumbles $4 on slumping demand

[brooklynite]

Source: CNN

NEW YORK (CNNMoney.com) -- Oil prices continued to decline Wednesday, after a government report showed stronger-than-expected inventories and a Federal Reserve report showed a weakening economy.

Light, sweet crude for September delivery fell $3.98 to settle at $124.44 a barrel on the New York Mercantile Exchange.

...snip...

Inventory report: In its weekly inventory report, the U.S. Energy Information Administration, a government agency, said crude stocks fell by 1.6 million barrels last week. Analysts were looking for a drop of 1.9 million barrels, according to a consensus estimate of oil analysts compiled by Platts.

Though crude supplies fell, stockpiles of petroleum-based products rose much more than expected. That sent the price of oil sinking on expectations of weakening demand.

Read more: http://money.cnn.com/2008/07/23/news/economy/oil/?postversion=2008072314

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Hmm, the Bush Administration is saying that the cause of oil price drops is that demand is down, and supplies are up. Don't see anything here about off shore drilling.....Your response, Senator McCain?