Oil prices hit two-month lows today as U.S. government data showed that energy demand continues to slump, according to AP. Benchmark crude for January delivery gave up $1.85 to $70.77 a barrel on the New York Mercantile Exchange. Prices dropped as low as $70.53 a barrel earlier in the day. The Energy Information Administration said gasoline supplies increased while the nation"s consumption of petroleum products fell to its lowest level since the week of July 10. «Demand is just so soft,» said Andrew Lebow, senior vice president and broker at MF Global. «We"re expecting consumption to return with the rebound, but so far we"re not seeing it.» The EIA report also said U.S. crude supplies dropped last week, though analysts said that typically happens toward the end of the year as refineries cut down on their inventories. In other Nymex trading in January contracts, heating oil lost 7.13 cents to $1.9196 a gallon while gasoline lost 5.91 cents to $1.8655 a gallon. Natural gas gave up 17.9 cents to $4.935 per 1,000 cubic feet. In London, Brent crude for January delivery fell $2.89 to $72.30 on the ICE Futures exchange.
