According to the federal Energy Information Administration, the national average price stood at $1.431 a gallon on May 29, down from $1.432 in the previous week. The drop followed a gain of 3 cents over the previous two weeks.
However, analysts said the more serious story may turn out to be the failure to rebuild inventories in anticipation of higher demand later in the year. At this point, stocks of both crude oil and distillates are moving downward.
After a year of controlled output by members of the Organization of the Petroleum Exporting Countries, oil prices have climbed from about $9 a barrel in February 1999 to more than $34 in early March 2000. During the same period, the price of diesel fuel climbed from about 95 cents a gallon to more than $1.49 a gallon.
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