Why do people think Bush has manipulated the gas prices?

Question

Oil prices, from which gas prices are derived, are driven by the laws of supply and demand. The summer was driving season and is peak time for fuel consumption. In the fall, demand tapers off, before it regains steam for heating in the winter. As such, oil prices are a function of supply and demand.

Theoretically, all the oil companies could band together to push prices down, but that would be extraordinarily difficult.

Bush cannot control the price of gas.

Also consider all of the financial institutions that trade oil futures. They would not gain from depreciation (except from shorting) so they wouldn't manipulate it either.

Oil prices have dropped roughly 29% over the past 2 months and gas prices have subsequently dropped by 28-30%.

Thank you; I realize what OPEC is.

I also realize that individual countries produce beyond their OPEC-mandated quotas in order to generate more revenue. I also realize that the planned OPEC production cut is likely to affect MAYBE 1/2 as much as they say it will because member countries do not want to lose that income stream.

Also, OPEC provides 1/3 the world's oil, which is, of course, a huge number, but that still leaves 2/3.

Answer 1

If politicians could manipulate prices, gas would always be cheap.
If oil cos could manipulate prices, it would always be expensive.

Since the price fluctuates widely, I have to conclude that price is determined by factors out of their control.

There are those who seem incapable of accepting the fact that it is possible for things to happen withiut their being some vast evil conspiracy.

Answer 2

People just can't answer the question being asked, can they? Anyway here is my take: I don't necessarily believe Bush is causing it, but he is certainly not helping. Because of his singular focus on Iraq and Saddam in particular, he has neglected everything else. At the beginning of his adminstration, he brushed off the talk of any conservation of gasoline usage. Now when the situation comes to bear, he is all about conservation. Invading Iraq is the most mistake regarding to foreign affairs an US president can ever made. Now Iraq is a hopeless mess. The hostilities between Shi'tes and Sunnis are never more intense. Middle East is close to all out regional war while Bush is still refusing all out diplomatic efforts ( with regarding to Iran, guess what, US wanted to help Iran to build nuclear plants a couple decades back, but it did not pan out due of lack of political will, the ironies just never ends). Bush may not be causing oil prices to run high, but all of what he does seem to make the problem worse. The gas price will continue to go high until it's high enough for people to change their driving habits. LIke it was said, it's all about supply and demand. XR

Answer 3

It's great that your Economics 101 class taught you the laws of supply and demand, a process that drives capitalism. However, isn't it a peculiar coincidence that gas prices have soared to the highest level in history under Bush and Cheney, two men who made their fortunes through the oil industry? Isn't it also interesting that prices have tumbled just before an election? In a perfect world, your theory is valid. With Bush at the helm, it's a fairy tale. Ask this same question after the election, when gas prices skyrocket.

Answer 4

- A lot of people don't trust him in general because of the wmd charade, and the linking of Iraq to 9-11 and Al Qaida to justify the war.

- Early in his administration, he met with leaders in the oil industry and energy industries to set policy, but he has never made public any of the discussion that took place.

- Both Bush and Cheney have a strong history in the oil business. Cheney's old firm Halliburton, gave him a 30 million dollar bonus upon his departure to become VP. Halliburton has since been awarded billions of dollars of sole source contracts that have not gone through the typical bidding process, and has already been accused of overcharging the government.

- The Bush family has historic business ties to leaders in Saudi Arabia, which would stand to gain if they cooperated in any pricing requests.

- major oil companies have been accused and convicted of anti-trust violations and price fixing by cooperating with each other.

- Many people believe the invasion of Iraq was all about oil.

You might be surprised about what can and cannot be controlled and the methods used to do so.

Answer 5

Because he owns 2/3 of the worlds oil.

Answer 6

Wow- another genius! Do you know why they call OPEC a "cartel"? Look it up and tell me that supply and demand are the only variables. And you don't think that a president who is also a millionaire Texas oil-man has anything to do with it? Ha ha ha! How many BILLIONS of dollars do you think his friends are making?? And the house of Saud- what about them??

Answer 7

He is capable of manipulating elections, and the facts, so I guess he could manipulate gas prices. But what I can't get, for the life of me, is why he is not capable of pronouncing the word nuclear.

Answer 8

Wrong!
Oil is traded on speculation.
Bush makes one phone call to Exxon and says, we aren't going attack Iran and the news gets out and prices fall.
As an example.

Answer 9

Because people are sheep.

Bush will be looked favorably upon in the history books, second only to Reagan.

http://youtube.com/profile_videos?user=irishdictator

Answer 10

We were Bushwhacked in the election of 2000. The price of everything started rising at that time.... milk, gas, etc. He's created a big pot of c*r*a*p and everytime he stirs, it really stinks.