Oil market investors tried but failed to start a rally in crude oil Thursday, leaving prices near $125 a barrel after an earlier move higher. At the gas pump, prices continued their retreat.

Light, sweet crude for September delivery rose $1.05 to close at $125.49 a barrel on the New York Mercantile Exchange.

The day's gains followed a sharp drop on Wednesday, when oil tumbled $3.51 to settle at $124.44 a barrel, its lowest finish since June 4. Crude has settled lower in six of the previous nine sessions, and is now trading nearly 15 percent below its peak above $147 a barrel earlier this month.

Americans used 2.4 percent less fuel over the past four weeks than they did a year ago, according to the latest figures by the Energy Department's Energy Information Administration. That may not sound like much, but industry experts say it represents a significant shift by the world's largest energy consumer. A bigger-than-expected increase in gasoline supplies only added to concerns that drivers are cutting back.

"The worries about demand erosion in the United States and an economic slowdown are really pulling prices down," said Victor Shum, an energy analyst with consulting firm Purvin & Gertz Inc. in Singapore. "This is the summer driving season and so there's no question that the data shows demand destruction in the U.S."

THE ASSOCIATED PRESS

Distributors' losses push Vietnam to raise gasoline prices 31%

HANOI - Vietnam's government announced a 31 percent increase in gasoline prices and raised the prices of other refined oil products, effective Monday.

The overheated economy's double-digit inflation rate had forced Vietnam to postpone increases to domestic prices for gasoline and other oil products this year. But the authorities have been forced to act as the widening gap between the domestic and overseas price for oil is creating massive losses at state-owned oil distributors. Vietnam imports all of its oil-product requirements because it has no refining facilities, though several refineries are in development.

THE ECONOMIST