For the past several months, oil prices have soared on the expectation that China would soon lead a new race for natural resources. But government data released so far this year has told a different story, and oil has tumbled nearly $10 a barrel in the first month of 2010. Americans are burning less gasoline than they did a year ago, according to a report this week from the Energy Information Administration. The EIA says the country's appetite for petroleum products has dropped every week this month. And while China should expand petroleum consumption this year, a decision to rein in risky bank loans and cool down its economy may curb China's energy appetite. “What's been driving oil prices is the promise of Chinese economic growth,” said Phil Flynn, an analyst with PFGBest. “But its demand numbers are very suspect right now.” All of this means consumers could enjoy cheaper gasoline and lower heating bills, though it usually takes an extended turn in energy futures prices for the discount to trickle down to the retail level. Since the start of the year, benchmark crude prices have sunk 11 percent. The contract for March delivery gave up another 75 cents Friday to settle at $72.89 a barrel on the New York Mercantile Exchange. In London, Brent crude for March delivery dropped 67 cents to settle at $71.46 a barrel.
