Market Forces Worked to Cool Oil Prices, API Says

[19-Jan-2007] U.S. oil demand dipped last year as mild winter weather and high fuel prices led airlines and other industries to find ways to cut fuel use, according to the American Petroleum Institute (API). During a media briefing Friday, API Chief Economist John Felmy and Ron Planting, head of statistical analysis, said 2006 presented challenges to energy producers and consumers but the market responded as rising supplies of gasoline and other fuels helped cool prices during the second half of the year. API officials also talked about challenges facing the oil and natural gas industry in 2007.