Analysts shocked when standard economics prove true

When I took economics in college, I figured some parts were easily understandable. In particular, supply and demand. Apparently, basic economic thought has evaded these analysts: Oil Hits Two-Month Low on Falling Demand

The price of oil fell to its lowest level in two months on Wednesday as evidence builds that the high cost of gasoline and other fuels is sapping demand.

New data from the Energy Department show that fuel consumption over the past month declined by almost 3 percent compared with last year. Analysts attributed the trend to soaring pump prices and a slowdown in economic activity, particularly among Gulf Coast states that were affected by Hurricanes Katrina and Rita.

"Maybe there is some elasticity to petroleum demand after all," said analyst Andrew Lebow of Man Financial Inc. in New York. The decline in oil prices coincided with an even more pronounced selloff of gasoline futures, which Lebow attributed in part to momentum trading.

Um...yeah. Gas prices go up...I stop using it as much. Pretty basic thing people do...I just don't see the mystery here. Then again, I don't have a doctorate in philos...er, economics.