I suspect a lot of the "lack of demand" we are seeing is really tied to the credit situation. Either buyer's letters of credit aren't being accepted, or banks that have inventory themselves (of oil, for example) are finding it necessary to sell. There may also be some impact of speculators leaving the market, and short sellers covering.

I have a hard time believing current prices reflect "demand" in the sense we usually think of, it terms of what buyers would use in a properly operating market. Instead, all of the disruptions are having an effect.