Oil prices....going DOWN DOWN DOWN!

[Ignacio Upton]

(I'm glad that oil prices are falling, and who isn't. But I'm concerned that this will benefit the Republicans, even though prices are going down due to market forces. While I blame oil companies and speculators for inflating prices somewhat, the main reason for why prices are going up is because of Indian and Chinese demand for oil, and because we are near peak oil. Although, if this Gulf of Mexico field is as big as they are saying, peak oil will hopefully be delayed. Unfortunately, voters are angry at Bush and consider OIL PRICES, not Iraq, not Social Security, not stagnant wages, and not healthcare costs, as a main reason. I remember last winter, when oil prices went down somewhat, Bush's job approval rating went back up in the mid-high 40's from the upper 30's, because of falling oil prices. I'm sorry, but out of all the things to blame Bush on, oil prices is much lower on my list than other events going on right now. I wish that voters would stop switching their opinion on Bush so drastically based on oil prices alone.)

Associated Press
Oil Prices Fall on Ample Supplies
09.05.2006, 02:42 PM

Crude oil futures fell Tuesday, pulled down by dropping gasoline futures as the summer driving season came to a close.

Also causing prices to fall was Chevron's discovery of new oil supplies in the Gulf of Mexico, as well as the lack of developments in the standoff between the United Nations and Iran, who defied the U.N.'s deadline to stop enriching uranium that could be used to produce nuclear weapons.

Light, sweet crude for October fell 69 cents to $68.50 a barrel in afternoon trading Tuesday on the New York Mercantile Exchange. Floor trading was closed Monday for the U.S. Labor Day holiday.

http://www.forbes.com/business/services/feeds/ap/2006/09/05/ap2994189.html

[Warpy]

1. A year ago they were predicting oil would be $40/bbl

by now. They were still predicting that for 2007 last spring.

Funny how something $28 above the predicted price can be seen as a BARGAIN.

Unless we get the strong dollar back, look for oil prices to stay high.

[Ignacio Upton]

3. I doubt oil prices will go down that low

But even if they go below $60, look for voters to start magically "approving" of the overall job Bush is doing, and for them to vote for their GOP Congressman/Congresswoman. The cynical, tin-foilly side of me believes that they are manipulating the market to benefit themselves on Election Day, but I think that this is real, especially considering the Gulf of Mexico discovery. I just wish that voters would look at the broader picture in how Bush is a failure, and not just switch their opinion of him because oil prices will be $10-15 lower than in July.

[Warpy]

16. I told them as much a year ago

when somebody passed along a memo predicting that. I had two reasons: Asia and the weak dollar.

The predictions were based on massive corrections (translation: depression) in both the Chinese and Indian economies.

However, the Chinese and Indians who are wealthy enough to drive cars or even motorbikes are as likely to give them up as Okies were in the Depression. It's a pride thing. They sold the horse and wagon and kept the car.

Oil prices will have more pressure to push them upwards than downwards, although a quiet hurricane season will see prices fall back to at leat the $65 level and possibly a little lower.

[rfranklin]

2. Self interest at work....

on the part of the oil corporations, as well as most Americans. If gas is cheap they will think more favorably about Bush. They will be able to drive their gas hogs to the 7/11 for a pack of breath mints without thinking twice--Bush is a great guy!

[eleny]

4. I wonder when they first discovered this oil field

I'm suspicious that they held this back to jack up prices and then sprung the "good news" for the election. Rove is a maliciously clever.

[Double T]

5. Before election, oil prices down, down, down..........

After election, oil prices up, up, up. How does it feel to be screwed then manipulated??

[RaleighNCDUer]

13. And when the prices go back up it will be because of:

A) The democrats took back the House, and can now inflict there wasteful spendthrift policies upon America,

or

B) The democrats, angry that they did not take back the House, are using their typical spoiler tactics to thwart the republicans plan to pass the economic boom along to the American people who have, till now, been prevented from benefitting from the good economy because of the democrats,

or

C) It's Bill Clinton's fault.

[Eurobabe]

6. Oh, yes, this "major find" in Gulf of Mexico

By Chevron. How ironic, just in time for the elections.

Repubes think they can reel us all in with cheapo gas in October. Bwahaha!

http://www.washingtonpost.com/wp-dyn/content/article/2006/09/05/AR2006090500275.html

[snowbear]

7. Andy Serwer (Fortune Mag) said on CNN this weekend that...

The Oil Companies are definitely going to do everything in their power to keep ReTHUGS in power.



He also stated that while oil prices will steadily drop up until the November election day (unless a hurricane knocks out some rigs in the Gulf).. that the LOWER prices will be a "blip on the screen" and that they'll go back up again after the midterm elections.

This was on the show "In the Money" on CNN on Saturday (replayed on Sunday)

[deaniac21]

12. Gas prices go up for Thanksgiving and Christmas and also

between Memorial Day and Labor Day.....who'd a thunk it!

[global1]

8. Again Another Convenient Coincidence For *Co and the Repugs.....

Don't you believe for one minute that this is due to market forces. This is the continuation of market manipulation for oil that has been going on since * took office. They can (*'s loyal oil companies) at will make up a scenario that will either raise or lower the cost of oil.

This is being done slowly to trump up *'s and the Repugs popularity for the Nov. elections. Right afterwards - the prices will climb again. You watch.

Don't be fooled. Don't let your Repug friends and neighbors be fooled.

[katamaran]

9. I have a hunch that prices are dropping before Iran heats up...

I have a hunch that prices are dropping before Iran heats up. Get oil prices as low as possible before starting anything with Iran. That way, the huge blow that drastically increasing oil prices would deal to the American economy will be a little softer. So instead of oil being $120 a barrel, it may only be $100 a barrel. Of course, they'll wait until after the elections to do it.

[SeattleRob]

10. "market forces"

translated - "mid term elections" The oil companies have to lower prices for their Republican buddies as the election approaches. I am sure after the election, "market forces" will cause a spike in the prices too.

[kenny blankenship]

11. Demand for oil from China and India cannot explain the decline can it?

What has happened right before your very eyes, DU, is that the apprehension of war with Iran has peaked and PASSED --according to the oil market.
If it was going to happen, and many feared it would, (and at least as many more hoped that it would!) it would have happened during the Israeli invasion of Lebanon. War with Iran would mean significant longterm disruption to world oil supply, making oil already pumped and awaiting shipment (the spot mkt) much more valuable.
THAT'S WHEN IT WAS SUPPOSED TO HAPPEN.

Some people miscalculated though, as it turned out. Oh well, buy on the rumor, sell on the news.

[bigtree]

14. I just paid $2.80

some drop :eyes:

[Ignacio Upton]

17. Where do you live?

n/t. I'm my area it's still as high as the $2.90's.

[Wednesdays]

20. Filled up at $2.27 this morning in OKC

Wonder if the red states, especially the oil states, are reaping the benefits the most?

[Initech]

15. Oil going down, opponents being smeared thanks to free propaganda...

Yup, sounds like a typical election year! :eyes:

[lonestarnot]

18. If they are going down now, they could have gone down THEN!

This is just more bushit!

[Ignacio Upton]

19. Check out this chart from GasBuddy.com:

http://66.70.86.46/test.gaschart?Country=Canada&Crude=f&Period=24&Areas=Canada%20Average,USA%20Average,&Unit=US%20$/G

The drop seems pretty sudden, although if you look at last November's prices when we won a series of local elections, they were still lower than they are now. I'm hoping that they don't get lower than that.