1- Is it because Bush asked the giant oil companies to reduce prices prior to the elections?
2- Is it because China is not demanding as mush oil as it did a few months ago?
3- Is it because the world has oil surplus suddenly?
4- Is it that oil export from Iraq, Nigeria or Latin America has increased?
I really wonder why oil prices are coming down, considering that our consumption or dependency on oil did not change! Where does the basic "Supply and Demand" economic Theory fit in this concept?
2006-09-04 16:08:59 · 14 answers · asked by Mr. J 4 in Politics & Government ➔ Other - Politics & Government
1. Hit the nail on the head. Bush is even faking a little diplomacy, until he can get everybody all charged up again.
2 China's consumption hasn't changed at all.
3.The world doesn't have more or less. Profits up. Elections coming. Wait and see what happens during the worst months of winter. Back in our pockets again and those who can least afford it will suffer.
4. The other countries exports didn't increase.
Every bit of the shortages, then a surplus, the prices are micro managed to the inth degree. We are the patsies.
2006-09-04 16:24:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Because the future traders are under the treat of government intervention. If the government makes it a law that one must be able to take delivery in order to bid on oil, then they will be out of the oil racket. This will cost them billions of dollars. So better to scale back for a little time, and hope the issue goes away.
2006-09-04 23:18:58 · answer #2 · answered by Pae 2 · 0⤊ 0⤋
because the government raises prices to pay for there fancy SUV's they drive.. Have you ever questioned how much the president makes a year? Much more than anyone of us Little People.... They do what they want.. They raise prices and lower them as they see fit... President Bush supposedly owns his own oil riggers....
2006-09-04 23:17:43 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No one mentioned Elections - and yes summer is ending but prices will more then likely go down in November or December.. again pushed by Elections.
By the gods they are so predictable.
2006-09-04 23:24:21 · answer #4 · answered by Anonymous · 0⤊ 0⤋
What has changed is the congressional elections in 8 weeks.
You really do not think that the powers want that issue around.
They will return to the previous levels afterward.
2006-09-04 23:16:16 · answer #5 · answered by Flagger 6 · 0⤊ 0⤋
5- The Iran controversy is calming down which eases the worries of oil investors and drives down the prices.
2006-09-04 23:15:33 · answer #6 · answered by nighthawk_842003 6 · 0⤊ 0⤋
Demand in America goes down every year when summer ends....the end of the driving vacation season.
2006-09-04 23:13:14 · answer #7 · answered by Brand X 6 · 0⤊ 0⤋
No it's because summer is over. Haven't you noticed that every summer gas prices go up then come down in winter.
2006-09-04 23:13:11 · answer #8 · answered by robert d 4 · 1⤊ 0⤋
They say demand is down, and supply is up.....my theory? They are getting ready to stick it to us!
2006-09-04 23:13:05 · answer #9 · answered by Anonymous · 0⤊ 0⤋
All I know is I am driving to go away this weekend and I hope they continue to go down.
2006-09-04 23:15:49 · answer #10 · answered by Anonymous · 0⤊ 0⤋