MSNBC: Lower gas prices have no correlation to November elections

[sabra]

http://msnbc.msn.com/id/14891597/

<snip>


Does anybody but myself wonder why oil prices have begun a rather precipitous drop just as the November elections approach? Just a coincidence?
L.C. – Address withheld


No, a lot of readers have the same question. And there may be an answer out there in the blogosphere somewhere that will confirm these suspicions. But there’s no evidence we can find to suggest that anyone in the White House or Congress is manipulating oil or gasoline prices to make for an easier trip on this fall's campaign trail.

There’s a lot of evidence to suggest that they couldn’t if they wanted to. In April, for example, after President Bush announced a four-point plan to rein in the pain at the pump, gasoline prices soared.

Simply put, there is no one person, company, group or country that can control the price of a commodity like oil that's traded on a global market. Even OPEC, which some readers believe “sets” the price of oil, has little or no control over oil pricing. Once upon a time, when those countries had lots of surplus production capacity, OPEC could decide to add or withhold supplies on the world market, which had some impact on prices. But that spare production capacity is gone. Even in its heyday, OPEC’s efforts at price controls were subject to widespread cheating on production quotas by its members; the cartel’s control over market prices was crude (pun intended) at best.

So who, exactly, does set oil prices? If you have to put a face on it — “the market” is the collection of oil traders who buy and sell barrels around the world, all day long. Oil is worth what they — and their customers — are willing to pay at the moment they agree on a trade. Some of those customers are investors, and over the past few years they’ve been making boatloads of money trading futures contracts. Those contracts are pieces of paper representing real oil, but most buyers and sellers have no intention of ever taking delivery of the oil.

[Donnachaidh]

1. BS.

Wonder if we can do a chart to log how FAST the prices are going down in areas that still have primaries?

[skids]

6. see #3 n/t

[skylarmae]

16. its funny that they omitted Utah's stats-$2.85 for reg here withHatch

up for re-election. Don't tell me its not rigged for the repukes...I know it is..!

[skipos]

2. Maybe Bush didn't ASK them to, they are doing it voluntarily

because big oil and big business LOVES Republicans.

[skids]

3. .

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=2831226&mesg_id=2831226

[oasis]

30. Interesting. Both interesting AND scary.

[hippiechick]

4. ... and my name's Mother Theresa !

:rofl: :rofl: :rofl:

[VolcanoJen]

5. Allow me to guess who authored that answer.

[peekaloo]

9. Looks like Roger Mudd auditioning for the Fat Bastard role.

yes I am making fun of this greedy bastard's appearance because I have no shame. :-)

[AndyA]

7. Oh, I'm so glad to know this!

Last year, they would have dropped had it not been for Hurricane Katrina, right?

I'll just ignore that the oil companies have been making BILLIONS in profits all along.

I'll be happy, fill my tank up at these super low prices, and thank God we have a wonderful pResident in office like George Bush, looking out for our best interests during his every waking moment.

Signed,
Freeper

:sarcasm:

:puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke:

:puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke: :puke:

[corkhead]

8. I see, they sure had me going there. No, it isn't the WH or Congress,

it's their repuke oil producing buddies

[fasttense]

10. Yeah right, If you believe that I've got a bridge I want to sell you.

As if the US government doesn't have any control at all. Those darn markets just control themselves don't you know. There is no such thing as government regulation and political arm-twisting. Nope, nope, nope, just because the oil corporations are afraid that their best friend in the whole world who goes by the name of Uncle George W. Bush might lose his power to give them our tax dollars if Democratic politicians obtained control, has nothing to do with the sudden and unexplainable drop in gas prices. Nothing at all. See, there's a bridge I own over in New York....

[rocktivity]

11. Actually, a DU-er did just that over the weekend

(link) and concluded, "...in general, it appears that prices are declining in some states faster than the national average and that just coincidentally, some of those states are crucial to the GOP this year." However, that certainly doesn't mean that the prices are falling as the RESULT of a "gentlemen's agreement" between the Bush monarchy and the oil companies!

:headbang:
rocknation

[bullimiami]

12. 1) there was NO EVENT or MARKET CONDITION that

caused the prices to rise in the first place.

2) There has been NO EVENT or CHANGING MARKET CONDITION that is causing a price freefall now.

Conclusion) We are being played by those that have the ability to manipulate the markets.



Bush made no attempt to keep us from being gouged.
There is surely some correlation between american politics and sudden oil price reductions.

[verse18]

13. Thank you so much MSNBC

for setting me straight about the issue of falling gas prices. I should have known there was no way * and the rest of his oil buddies would manipulate gas prices in order to gain more votes before a midterm election.:sarcasm:

[rocktivity]

14. Rocknation: Yeah, and MSNBC's support of Bush's wars have no correlation

to their being owned by a defense contractor!

:eyes:
rocknation

[VolcanoJen]

15. Question: Why were Californians charged 100x the price for natural gas...

than Texans were paying at the same time?

Answer: I'm not sure, but I can definitely guarantee you it had nothing to do with Enron. Enron was not powerful enough to manipulate the natural gas market. They were not powerful enough to shut down plants and squeeze production capacity. The natural gas market does not exist in a vacuum, you idiot. Stop asking so many questions.

:eyes:

[Skidmore]

17. Now this is a story for KO to sort out.

[ComerPerro]

18. Prices went up in April after Bush's plan because there was no election

[JNelson6563]

19. And Big Brother has increased our chocolate rations!

I'd go on about how double-plus-good everything else is but I need to hurry or I'll be late for the 2 minute hate.

:toast:

Julie

[liberal N proud]

20. Does anyone wonder, why they are reporting this?

If there is nothing there, then why is this a news story????

With the collusion of the media, they will go along with a cover-up of the reason why prices are going down.


What the hell is this, UPs and Downs? Where are the Downs?

[gkhouston]

32. they're telling us to pay no attention to the man behind the curtain.

That this question is being publicly addressed tells me that a lot of people have been asking it.

[cboy4]

21. Lemme check the meter......

Yup....red zone.

[Nickster]

22. Funny, gas prices from early August to the week or so after Labor day

have historically gone UP in the last 5 years in Chicagoland, EXCEPT for the year 2004. What could have been happening in that year? Hmmmmm. The other strange drop in prices is occuring this year, about 3x faster than 2004 did, what could be happening this year? Hmmmm. It most all be a terrible coincidence.

So many interesting coincidences pop up when you start looking at years worth of pricing data like I just did.

You can download an entire database of retail gasoline prices for your area and crunch the numbers yourself.

http://zfacts.com/p/35.html

[ComerPerro]

24. funny how that works, isn't it. And yet, still, there are apologists

on this very site, who insist that gas prices are driven by the free market, and the free market only.

I think many of them would agree with this article.

And I know who they are, they have arrogantly attacked me with thier "supply and demand", Econ 110 bullshit. Naive...

Sorta like, "Oh, see, this is the proof. Bush said he would lower prices back in April, and they went up. Therefore, he can't lower them, therefore they can't be lowered for the election."

As though Bush actually is interested in helping people.



Those people need to see your example, I'd be interested in what they have to say to that.

Thanks for posting it

[Greyhound]

33. There are many livelihoods here that depend on the continuation of

a completely rigged "free market". They make very good salaries (top 10%) while producing nothing but more deforestation and spin.

[LaPera]

23. Can you believe these lying corporate & republican shills?

They really expect us to believe this LIE...But they know enough people will, so they just keep shoveling up the bullshit and the republican sheep keeping eating it up! What ever the Rove/White House spin...they will believe it as gospel.

[warrens]

25. If it doesn't go back up when heating season starts

They're full of shit. If we have an exceptionally warm October, fine. But if it is seasonally chilly, demand should go way up, and so should the price.

[moondust]

26. "the White House or Congress" don't have to say a thing.

The OIL INDUSTRY knows exactly who in Washington is protecting their windfall profits and how to temporarily seduce the pertinent constituents.

[jsamuel]

27. i have said it over and over again, it is the futures market

[riona]

28. One of our local channels said

it was because demand was down and there have been no hurricanes. ??

[mnhtnbb]

29. What a crock!

[4_TN_TITANS]

31. WHEW........what a relief!

christ on a trailer hitch :sarcasm:

[Horse with no Name]

34. And in April

there aren't any elections in the very near future when Republicans were losing their asses.
Tell me again why that is relevant?