Dropping gas prices.

So, ever since bush announced the lifted ban on drilling, the price for a barrel of oil has been going down. Why is there so much silence on this?

The falling prices do seem to tie into Bush's comments, but I doubt very seriously that's the only reason they have fallen. I am sure that some of the speculators saw his comments as a reason to step back a bit, but it's not the only reason.

Originally posted by skeptic1
The falling prices do seem to tie into Bush's comments, but I doubt very seriously that's the only reason they have fallen. I am sure that some of the speculators saw his comments as a reason to step back a bit, but it's not the only reason.

What other reasons are there?

It's simple investment economics. Speculators saw oil as a 'guaranteed' investment, and continual increases in speculation caused the prices to inflate. Now there's some concern over the US dropping at least some of its dependency on oil (notice I said concern over, not that we would) and some speculators are backing off. Thusly, the price is falling without more ready buyers.

I also attribute some of this concern to Congressional hints about regulating speculation on oil. The real cause is the same, though. Supply and demand, not of oil, as there is no shortage, but of oil futures. Gas will slowly drop, while diesel is already dropping fairly fast.

TheRedneck

reply to post by TheRedneck



Exactly. The US demand has dropped a tiny bit (I think the number I saw was around 1%) and also, the speculators are worried about Congress regulating them. Doubt they will, though, since Congress is good at talking but not so much with the doing.

I think that the President's remarks just came at the right time and tied in with the "real" reason prices are dropping (hence, my saying that it "seems" tied in).

reply to post by skeptic1



IMHO, the demand drop doesn't justify the % oil drop. Nor do I believe the "words" of an unpopular president causing the start of decrease of the same day.
To me it seems to convienent. Personally I think it is contrived volatilty
and as we approach Sept and heating season, it should be above $150/b.
Also, nothing is being done on falling dollar and the Credit industry hasn't tanked, nor has a a Major Hurricane made a statement on the east coast,
and Iran is still simmering, and Barack isn't in office yet.

Whew..........Hope it's all a bad dream.........

unpopular president

Hes not as unpopular as you think. Sure, hes unpopular among democrats. Stop the presses!

reply to post by Dronetek


Last I saw he had a 22% approval rating. Unless the country is 78% democrats... Which means the GOP is really frakked, hard, this election.

What with the gas and oil prices? One the Democrats are trying to force the Oil Companies to drill for oil in Alaska and Offshore. You heard me, the DEMOCRATS are trying to force the oil companies to drill in Alaska and Offshore. Don't believe me?
www.abovetopsecret.com...

Also, Obama has said he will take out the Enron LoopHole put in by the GOP, and with the way things are looking there will be no more Oil Men in the White House after this election which means no one will be there to do everything in their power to make the Oil Companies profit while sodomizing the people at the gas pumps.