posted on Mar, 26 2012 @ 11:44 PM
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