Posted on 07/15/2008 3:31:21 PM PDT by KatyLoraleyVidales
There was a fantastic article today in National Review Online by Kudlow praising Dubya for putting pressure on Congressional Demos to drop ban on offshore drilling.
Kudlow writes: "Democrats keep saying that it will take 10 years or longer to produce oil from the offshore areas. And they say that oil prices won’t decline for at least that long. And they, along with Obama and McCain, bash so-called oil speculators. And today we had a real-world example as to why they are wrong. All of them. Reid, Pelosi, Obama, McCain — all of them."
Kudlow adds: "Crude-oil futures for August delivery plunged $9.26, or 6.3 percent, almost immediately as Bush was speaking, bringing the barrel price down to $136. "
Interesting that after two years of Democratic campaign promises claiming to "bring down the price of oil" we finally see results at the hand of none other than good ol' number 43 himself (that's Bush to all those of you not keeping track)...
(Excerpt) Read more at rightupfront.org ...
Of course, this does suggest that speculators, then, DO have a significant effect on the price of oil.
CNN.com has a lead article on my mixed up home page about this drop in price. It doesn’t even mention Pres. Bush’s comments on more drilling. The DBM isn’t stupid; it’s evil.
yeah, everything I heard is saying oil price drop is due to the economy.
Keep pressuring the congress.
Pelosi AmericanVoices@mail.house.gov
The prospects for future supply have an effect upon futures prices. If it appears supply will increase and prices fall then who is going to be willing to agree to take delivery at a higher price? Cart and horse.
No, I understand. Clearly the supply is the bigger issue. But speculation does contribute, we can’t deny that after today. I mean, it just happened right in front of our noses.
The price also dropped on the announcement of GM restructuring and electric cars and develiopment of small engines. They won’t need much refinery product and they will appear in Sept.
“Speculators” is a word that people are trying to turn into a bad word. Oil speculators are buyers and sellers of future contracts for the purchase of oil. For every buyer there is a seller.
When you fill up your gas tank before it is near empty, (if you do), you are ‘speculatiing that today’s price is lower than the price later in the week, when your tank will be lower. If you wait until the tank is on low, you may be speculating that the price will not be higher later in the week.
We all “speculate” all the time. Have you ever waited until the after-Christmas sales to but something, because you will get a better price? You speculated that the item you want will be there at the reduced price.
I’m not trying to demonize speculators, I’m just saying they DO seem to have SOME effect on the price.
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