Why do people actually think that Obama or any other President can do anything about the price of ga

first thing you have to understand where the price comes from for oil. Oil prices are basically set by speculators. They perceive that the demand will be greater than the supply at a certain time so they start manipulating the market to their benefit. That is why every time the middle east rumbles a little bit, oil goes thru the roof. Thats why it shot up when Obama killed the pipeline deal, it is also why the price drops when they announce they will release some of the strategic reserves.

If a sitting president, any sitting president gives the speculators confidence they will encourage growth in the market, the futures trading will show that confidence as lower prices at the pump, because now the oil refineries are obtaining crude at a lower price. So essentially a president can do a lot for lower oil prices, more than one would initially think.

When the prices shot up under Bush, it was primarily a response based on futures trading as a result of Katrina. Bush released some from the reserves and approved more drilling permits (which by the way is the new exploration and drilling that Obama is now taking credit for). This action encouraged the speculators and it affected the market price of crude accordingly.

Yes oil is a global market, but as the US is one of the largest importers and consumers of all oil products ( the list of products made from oil is staggering) plays a major part on the world stage as does the administration's energy policy. That will heavily influence the futures traders and speculators.

The problem with Obama is that he has convinced many people he has control over everything so it's only natural for folks to believe he controls the price of gas too.
This started four years ago when he, Pelosi and Clinton all criticized Bush about the price of gas.
Hypocrites.

So now that the gas prices are dropping dramatically, all those people who have been on here bashing Obama are supportive of him now right?

That's how it works isn't it?

What's that? Oh, NOW he has nothing to do with it, but when it was higher, it was all his fault....

ahhhh ok... yeah..... right....

Originally posted by SM2
first thing you have to understand where the price comes from for oil. Oil prices are basically set by speculators.

Bravo Bravo we have got a winner! It took me two pages before I saw the word speculation.

To be sure let us get our terms straight. When I say speculators I am talking about those who buy or sell future contracts with no intention of holding them until the delivery date. Currently the market is being ruled by the speculators.

Go back over the years and look back on the percentage of those who hold the contracts until actual delivery compared to those who do not. Those who held on to them used to be in the majority. In the last 10 years or so it has shifted completely where they are now a small minority. It isn't even close.