As you can see over at NYMEX, the price of a barrel of oil has dropped from about $77 to just over $60 over the past month or so. That is a 22% drop - rather large. Why is this?
Well, part of it would be that the world is awash in oil - while oil prices soared this year, the plain fact of the matter is that it was speculative sharks and dunces who were pushing the price up. There has been no real threat of a break in oil supplies - but the continuing battle in Iraq and the threat of battle with Iran have provided the rationale behind an upward surge in oil prices. Over the past few months, things have improved in Iraq (in spite of leftwing and MSM attempts to portray it otherwise), while the conventional wisdom has grown that, come what may, President Bush will not act on his oft-stated assertion that Iran will not be permitted to obtain nuclear weapons. With the world awash in oil and the threat of conflict supposedly receding, oil prices simply could not sustain their vastly over-inflated levels.
And that gets me wondering - there has been no actual declaration by the Administration that we won't take military action if that proves necessary...but there has been a lot of diplomatic activity and repeated statements that we prefer a diplomatic solution to the crisis. The major reason for Iran and Venezuela being able to trouble us is the fact that they are flush with oil revenues - but both countries are actually bankrupt and in miserable economic straights; drop those oil prices a bit, and a fiscal crunch comes in which would greatly curtail Venezuela's ability to foster anti-Americanism in south and central America, as well as putting a huge dent in Iran's ability to purchase materials for its nuclear weapons program (China and Russia aren't giving that stuff away - they are getting top dollar for it), as well as Iran's ability to fund terror and other campaign in Iraq and Afghanistan. Could it be that we are talking the sweet song of peace in order to put economic pressure on Iran without actually having to get anyone to agree to sanctions?
Time will tell.
Posted by Mark Noonan at September 22, 2006 01:09 PM
Comments
Running up to the November election, where the GOP is in serious trouble, gas proces all of sudden drop. How convenient.
On the same note, why have there been no terrorist alerts since the 2004 election? Before the "election" every time Bush's poll numbers dropped a bit that silly color coded terror alert level was raised. Now nothing.
You would think Americans would not be so easily fooled. Oh well.
Wade
Posted by: Wade at September 22, 2006 01:42 PM
Also, the predictions that the 2006 hurricane season would bring more Katrina-like events had kept the price of oil artificially high. Those predictions have not panned out to date.
Posted by: baldeagle390 at September 22, 2006 01:43 PM
The major reason for Iran and Venezuela being able to trouble us is the fact that they are flush with oil revenues - but both countries are actually bankrupt and in miserable economic straights.
In both cases, we see countries spending lots of $ on their respective militaries, while life for the "little guy" in both countries isn't so great. In other words, their two governments are doing precisely what our left has so often accused our government of doing, particularly when a Republican is in office.
Posted by: Bigfoot at September 22, 2006 01:56 PM
The libs blamed Bush for high gas prices. Will they give him credit for lowering them? No! Rove gets bashed this time, fall elections coming up. OBL, Chavez, Iran and American liberals--- the axis of bash.
Posted by: SEW at September 22, 2006 02:03 PM
Bigfoot, excellent observation.
"the axis of bash"-SEW
LOL.
:)
Posted by: Freedom1 at September 22, 2006 03:59 PM
Could it be that we are talking the sweet song of peace in order to put economic pressure on Iran without actually having to get anyone to agree to sanctions?
Now that just has Karl Rove written all over it.
Running up to the November election, where the GOP is in serious trouble, gas proces all of sudden drop. How convenient.
Karl Rove again. A-fu.king-mazing!!
I am so looking forward to November 7th. And all the mea culpas from the Libs here on November 8th -- well, that's gonna be fun too. And then all the conspiracy theories about how the election was stolen (again). Better pop up a big batch of popcorn, heh.
Posted by: Retired Spook at September 22, 2006 05:10 PM
Democrats are not going to win anything if they run on the economy. The Wall Street boys will put enough money on the Main Street and into K Street to convince every American that things are great.
Americans in the "heartland" can continue charging and continue shopping while avoiding any real economic sacrafice for the "wars" into which we currently are pouring our treasury.
People are now willing to work for paltry paychecks, diminishing healthcare and no retirement security because you can charge a big screen TV and get the DVD player for $29.00
It's cannot last forever. Communist China will only loan the U.S. so much money.
So for now the real issue of the economy is a dead issue politically.
Democrats should instead pound the point that Bush has made the world a far more dangerous place and we are far less secure than at any other time in recent history.
Wade
Posted by: Wade at September 22, 2006 05:24 PM
"Running up to the November election, where the GOP is in serious trouble, gas proces all of sudden drop. How convenient.
On the same note, why have there been no terrorist alerts since the 2004 election? Before the "election" every time Bush's poll numbers dropped a bit that silly color coded terror alert level was raised. Now nothing.
You would think Americans would not be so easily fooled. Oh well."
No Wade, obviously you were fooledto believe those silly "arguments".....have some more Kool-aid.
Posted by: TiredofLibBullShit at September 22, 2006 06:35 PM
And then all the conspiracy theories about how the election was stolen (again). Better pop up a big batch of popcorn, heh.
Posted by: Retired Spook at September 22, 2006 05:10 PM
*Chuckles*
Now I'm not saying you were the first to say this but I'm just going on record at this point to agree with you fully. All of our usual suspects will come in trumpeting some victory or claiming a stolen election here or there and yet not support any kind of election reform. Funny that...
Posted by:
Gozer at September 22, 2006 07:51 PM
Mark, Interesting thought. I never thought about that. I remember when I was a kid during the iran hostage crisis, when there were signs up saying don't drive over 55 MPH because wasting gas was helping the terrorists there. I would love it if there was a unified national effort of all americans to reduce their gas consumption, if for no other reason but to hurt the terrorist countries. It would also be great if we could agree that it is in our countries interest to become energy independent. It would be great if the dems would stop the pissing contest about alternative versus other forms of energy. President Bush has pushed alternatives more than any other president in history. We need to explore ALL our options and stop handcuffing ourselves with this pissing contest. The dems have to stop saying that we won't do this and we won't agree to that.
REBUILD THE TOWERS!!
Posted by: james allegro at September 22, 2006 08:22 PM
Yes, REBUILD THE TOWERS!! AND ONE STORY HIGHER THIS TIME, PLEASE!
And Yes, Use more AMERICAN forms of energy!
STOP DEPENDING ON FOREIGN SOURCES!!
BUILD A REFINERY IN CALIFORNIA, AND BUILD AN OIL PIPELINE FROM ALASKA TO THE REFINERY IN CALIFORNIA! SIMPLE AS THAT!
LET'S PUT PEOPLE TO WORK, AND GET THEM OFF OF WELFARE, IT'S NOT *FAIR* TO THE WORKING MAN, TO PAY FOR PEOPLES LIVING WHO WON'T WORK!!
Jeremiah
Posted by: Jeremiah at September 22, 2006 09:13 PM
Looks like Wade has got us this time, guys. He's a genious--Bush, Cheney, and Halliburton skimmed their billions from big oil just in time for the '06 elections. Prices drop, Republicans stay in power, and gas is $15/gallon by Christmas.
Way to go, Wade; you're the boy...I mean, man!
//bullshirt off//
Posted by: keefer at September 22, 2006 11:25 PM
Really Mark! Your not posting all my great posts that will aid in the destruction of Republican ideology! Is it really that scary for you? You don't have a foot to stand on, do you? You Republicans never did.
Posted by: SUSA at September 23, 2006 12:07 AM
"BUILD A REFINERY IN CALIFORNIA, AND BUILD AN OIL PIPELINE FROM ALASKA TO THE REFINERY IN CALIFORNIA! SIMPLE AS THAT!"
Build the refinery in Alaska.
Save yourself 10,000 miles of pipeline, running through Canada.
Posted by: The Small Town hick at September 23, 2006 02:06 AM
Please report any inappropriate comments to abuse (at) blogsforbush (dot) com. Be sure to include the title of the blog entry, the name of the commenter, and the text of the offending comment.
Post a comment
Running up to the November election, where the GOP is in serious trouble, gas proces all of sudden drop. How convenient.
On the same note, why have there been no terrorist alerts since the 2004 election? Before the "election" every time Bush's poll numbers dropped a bit that silly color coded terror alert level was raised. Now nothing.
You would think Americans would not be so easily fooled. Oh well.
Wade
Also, the predictions that the 2006 hurricane season would bring more Katrina-like events had kept the price of oil artificially high. Those predictions have not panned out to date.
The major reason for Iran and Venezuela being able to trouble us is the fact that they are flush with oil revenues - but both countries are actually bankrupt and in miserable economic straights.
In both cases, we see countries spending lots of $ on their respective militaries, while life for the "little guy" in both countries isn't so great. In other words, their two governments are doing precisely what our left has so often accused our government of doing, particularly when a Republican is in office.
The libs blamed Bush for high gas prices. Will they give him credit for lowering them? No! Rove gets bashed this time, fall elections coming up. OBL, Chavez, Iran and American liberals--- the axis of bash.
Bigfoot, excellent observation.
"the axis of bash"-SEW
LOL.
:)
Could it be that we are talking the sweet song of peace in order to put economic pressure on Iran without actually having to get anyone to agree to sanctions?
Now that just has Karl Rove written all over it.
Running up to the November election, where the GOP is in serious trouble, gas proces all of sudden drop. How convenient.
Karl Rove again. A-fu.king-mazing!!
I am so looking forward to November 7th. And all the mea culpas from the Libs here on November 8th -- well, that's gonna be fun too. And then all the conspiracy theories about how the election was stolen (again). Better pop up a big batch of popcorn, heh.
Democrats are not going to win anything if they run on the economy. The Wall Street boys will put enough money on the Main Street and into K Street to convince every American that things are great.
Americans in the "heartland" can continue charging and continue shopping while avoiding any real economic sacrafice for the "wars" into which we currently are pouring our treasury.
People are now willing to work for paltry paychecks, diminishing healthcare and no retirement security because you can charge a big screen TV and get the DVD player for $29.00
It's cannot last forever. Communist China will only loan the U.S. so much money.
So for now the real issue of the economy is a dead issue politically.
Democrats should instead pound the point that Bush has made the world a far more dangerous place and we are far less secure than at any other time in recent history.
Wade
"Running up to the November election, where the GOP is in serious trouble, gas proces all of sudden drop. How convenient.
On the same note, why have there been no terrorist alerts since the 2004 election? Before the "election" every time Bush's poll numbers dropped a bit that silly color coded terror alert level was raised. Now nothing.
You would think Americans would not be so easily fooled. Oh well."
No Wade, obviously you were fooledto believe those silly "arguments".....have some more Kool-aid.
And then all the conspiracy theories about how the election was stolen (again). Better pop up a big batch of popcorn, heh.
Posted by: Retired Spook at September 22, 2006 05:10 PM
*Chuckles*
Now I'm not saying you were the first to say this but I'm just going on record at this point to agree with you fully. All of our usual suspects will come in trumpeting some victory or claiming a stolen election here or there and yet not support any kind of election reform. Funny that...
Mark, Interesting thought. I never thought about that. I remember when I was a kid during the iran hostage crisis, when there were signs up saying don't drive over 55 MPH because wasting gas was helping the terrorists there. I would love it if there was a unified national effort of all americans to reduce their gas consumption, if for no other reason but to hurt the terrorist countries. It would also be great if we could agree that it is in our countries interest to become energy independent. It would be great if the dems would stop the pissing contest about alternative versus other forms of energy. President Bush has pushed alternatives more than any other president in history. We need to explore ALL our options and stop handcuffing ourselves with this pissing contest. The dems have to stop saying that we won't do this and we won't agree to that.
REBUILD THE TOWERS!!
Yes, REBUILD THE TOWERS!! AND ONE STORY HIGHER THIS TIME, PLEASE!
And Yes, Use more AMERICAN forms of energy!
STOP DEPENDING ON FOREIGN SOURCES!!
BUILD A REFINERY IN CALIFORNIA, AND BUILD AN OIL PIPELINE FROM ALASKA TO THE REFINERY IN CALIFORNIA! SIMPLE AS THAT!
LET'S PUT PEOPLE TO WORK, AND GET THEM OFF OF WELFARE, IT'S NOT *FAIR* TO THE WORKING MAN, TO PAY FOR PEOPLES LIVING WHO WON'T WORK!!
Jeremiah
Looks like Wade has got us this time, guys. He's a genious--Bush, Cheney, and Halliburton skimmed their billions from big oil just in time for the '06 elections. Prices drop, Republicans stay in power, and gas is $15/gallon by Christmas.
Way to go, Wade; you're the boy...I mean, man!
//bullshirt off//
Really Mark! Your not posting all my great posts that will aid in the destruction of Republican ideology! Is it really that scary for you? You don't have a foot to stand on, do you? You Republicans never did.
"BUILD A REFINERY IN CALIFORNIA, AND BUILD AN OIL PIPELINE FROM ALASKA TO THE REFINERY IN CALIFORNIA! SIMPLE AS THAT!"
Build the refinery in Alaska.
Save yourself 10,000 miles of pipeline, running through Canada.