By Aaron Clark Nov. 14 (Bloomberg) -- Gasoline futures fell for the third time in four days as the global economic slowdown cut demand in the largest energy-consuming countries. The motor fuel dropped as much as 6.5 percent after China Petroleum & Chemical Corp., supplier of more than half the fuel in the world's second-biggest oil consumer, said it's slashing processing rates by 10 percent from July's record. Fuel demand in the past four weeks was 6.6 percent lower than a year earlier, a U.S. Energy Department report yesterday showed. ``In the energy sector it's boom or bust and now we are seeing the downside,'' said Dan Flynn, an energy analyst at Alaron Trading Corp. in Chicago. Flagging demand and consumer confidence are the main contributors to falling prices, he said. Gasoline for December delivery fell 6.33 cents, or 4.9 percent, to settle at $1.2391 a gallon at 2:49 p.m. on the New York Mercantile Exchange. Prices have dropped 50 percent this year. The futures yesterday touched $1.21 a gallon, the lowest since the ethanol-based contract began trading in October 2005. Crude oil for December delivery slumped $1.20, or 2.1 percent, to $57.04 a barrel. Crude is down 41 percent this year. Gasoline prices have dropped as cash-strapped U.S. consumers, who are grappling with rising unemployment, cut back on unnecessary trips. Regular gasoline at the pump, averaged nationwide, fell 2.6 cents to $2.152 a gallon, AAA, the nation's biggest motoring group, said today on its Web site. That's the lowest since January 2007. Weaker Economy Retail sales in the U.S. dropped 2.8 percent in October, the fourth consecutive decline and the biggest since records began in 1992, the Commerce Department said today in Washington. Purchases excluding automobiles also posted their worst performance. The U.S. consumes 24 percent of the world's oil. ``When the economy looks bad the gasoline market looks worse,'' said Bill Boeschenstein, a broker at Dynoil Energy Inc. in Cape Elizabeth, Maine. ``I think there is psychological correlation between the economic weakness and the gasoline markets.'' U.S. gasoline imports fell to the lowest level in almost three years as consumers cut back on driving, the Energy Department said yesterday. Imports of the motor fuel dropped 451,000 barrels a day, or 43 percent, to 589,000 barrels in the week ended Nov. 7, the lowest since Nov. 25, 2005, according to the agency. Imported gasoline has averaged 1.06 million barrels a day this year. Gasoline stockpiles rose 1.98 million barrels to 198.1 million, 1.6 percent higher than a year earlier, the agency said yesterday. Inventories were forecast to rise 100,000 barrels, according to a Bloomberg News survey of analysts. To contact the reporter on this story: Aaron Clark in New York at aclark27@bloomberg.net

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