I guess all the accusations that oil companies deliberately lowered the price of oil (and thereby gas) prior to the election to help George Bush and the Republicans gain reelection have turned out to be hollow. The price of oil is around $55 a barrel today and it is more than a week after the elections. I stated before that I heard many political types make these ridiculous claims prior to the elections. To be fair, one of the guys I heard is not a rapid Democrat (though he is one who was screwed by his party).
Oil is down because of a few things. So far the weather has been mild, though it is only fall. People are driving less because the vacation season is over for most people and their kids are back to school. This is all about supply and demand but I doubt I will ever see the same idiots in Congress who stood in front of gas stations complaining about $3 gas get in front of cameras applauding the lower prices. Though every one of them blamed George Bush for high gas prices, I know I will never see any of them give him credit now that prices are lower.
Economists had earlier predicted that gas could be well below $2 around thanksgiving. I do not think that will be the case though Thanksgiving is 5 days away and I paid $2.09 a gallon yesterday. That is a reasonable price and should make many people happy.
The idea that oil companies control the price is silly. oil is a world wide product and the global economy regulates the price. However, if I were an oil executive and could regulate prices, I would raise them the day after the Democrats take office so that all the Republicans in the minority could stand in front of gas stations and accuse the majority of allowing it to happen. That would only happen in a perfect world….
Source:
al-Reuters