Oil prices have gone down with just the mention of drilling, isn't the price now being SPECULATED downward?

To all you ignorant Libs out there, speculation actually helps get prices to where they will end up much faster. Prices will go down once we actually drill. Now through speculation, the prices have been speculated downward in order to beat the future price drop.Oil prices have gone down with just the mention of drilling, isn't the price now being SPECULATED downward?
Nope, it was not not the mention of drilling.





Conservation plus Less Demand


Americans have driven 40 Billion miles less in the past seven months pushing down demand for gas by 2.4%.





all bush did was lift the executive ban on off-shore drilling.


without congress doing the same that means almost nothing.





then as now the supply of crude is Still stable.





as always speculation is a short term problem


the free market always corrects itself (economics 101)


----------------------


and from todays Wall Street news..


Oil Prices still falling due to consumer Demand.


Traders sold oil contracts on the belief that prices are still to high in relation to DEMAND and have further room to fall.


..$ 4.00 per gallon gas has clearly killed demand.Oil prices have gone down with just the mention of drilling, isn't the price now being SPECULATED downward?
Oil prices are going down because of the lowering demand and increased value of the dollar.





For those of you who think it is lowering because of talks of future drilling, what are you smoking?
Oil price directly related to Value of dollar.





US Dollar is getting worthless. Can you imagine US has 482 billion dollar budget deficit.
Ignorant libs? You claim that the prices of oil drop merely on the mention of 'drilling' and you call us ignorant? I suggest you start studying how the market works. Oil is a commodity and everyone, including myself, who plays the market knew that the price of oil was a market bubble waiting to burst. It had nothing to do with drilling, it had everything to do with what people were willing to pay on the commodities market. You know, just like the housing pricing and mortgage bubble burst. The part you forget to mention is that oil is on an upward trend despite the bubble burst. Over the long term it is going to adjust and just keep rising as demand keeps rising.
Thats the way the market works and why McCain said that and I paraphrase that the mental impact would lower prices. This is what he meant. The futures market responses to what future brings and knowing that the drilling ban ends September 30th and Bush and the Republicans won't let the Dems renew it will have that ';mental'; effect.





As far as the Strategic Oil Reserve I have to say it is sad that Obama rather put his election campaign ahead of our National Security. The man will be a disaster.
You're right! All we have to do is to have companies say they are preparing to drill and prices would come way down. Let's face it, liberals don't won't prices to come down.
How about if I promise you a candy bar in 2030?


Will you lower the price for me now?


Why not? Too long to get your candy?


Not so sure I can take delivery?


That's oil, they are bidding on taking delivery in three months.


Talk of drilling, even the presidents removal of the moratorium on offshore drilling that Bush One put in place isn't making the difference. That candy won't be ready until 2020.


I think they simply found the highest price that the market will bear without hurting their businesses.


An that's about all it will ever be.





I used candy as an example to give you something apolitical that you would be familiar with purchasing.
thats how oil prices work speculation
If you follow the news for the last few months, oil prices have a lot more to do with stability in the Middle East than with the prospect of more domestic drilling. When Bush makes a speech threatening Iran (or vice versa), the price goes up. When spreading the war to Iran looks less likely, the price goes down.





The biggest development in that story recently is that Bush sent an envoy to negotiate with Iran, something that for years he swore he would never do. This is a big development! That's what has brought down the price of oil because war with Iran now looks much less likely.





There is no real shortage of oil! You said right in your question that the prices are caused by -speculation-, meaning futures trading. The supply of oil is not the problem, it's the future supply. If we got into a war with Iran and Iran closed off the Straits of Hormuz, that would cut off the entire supply of Middle East oil to the entire world. That's what is driving speculation in oil futures. The greater or smaller likelihood of that happening is what makes oil prices go up and down.
If you are going to call someone ignorant, perhaps it would be better if you knew more than they did.





The price of oil went up because of speculation. Speculation that Bush and McCain's threats of invading Iran would reduce the amount of oil. Speculation that Bush and McCain's threats against Venezuella would reduce the amount of oil. Speculation that Bush and McCain's refusal to encourage meaningful alternate energy or conservation would keep demand high. Speculation that Bush's inability to get the Saudis to increase the amount of oil they pump would keep supply low. Of course, Bush's cutting off of Iraqi oil didn't help.





What happened? Obama and the Democrats used public opinion to force Bush to actually ask the Saudis to pump more and, low and behold, the Saudis agreed.





What happened, Congress started working on a bill to discourage speculation. Since speculators would end up losing money (or not making as much) less speculation occured and the price went down.





So the Democratic Congress has succeeded in counteracting some of the Republican high energy price policy. The price of oil is still 6 times what it was before Bush and the Republicans started pushing the prices higher.
Drilling will bring the price down. just a fact of supply and demand. And to ignorant Mo Fo's (lib or conservative) - we need more refineries.
LMAO, ironic that you used the word ignorant.





Oil prices fell primarily due to a slump in consumption/demand in the 2nd quarter.





The most rapid way to reduce the gas price is to alleviate domestic deliveries of imported oil with sales from the reserve, just like we've done several times before.





And no, future supply has very little effect on market price, only realized supply makes major differences. This is why the market is primarily supply/demand driven, instead of maybe/maybe not.





I think it's adorable when people who have never been involved in the financial industry pretend to understand commodity market dynamics.





You want oil so bad? Go drill it out of Iraq.
Quit complaining about low oil prices. That means you're paying less for gas. And that should make you happy.
You are correct, speculation runs the market as well as supply and demand!
Wake up. The oil industry is price-gouging. The American government is finally putting some pressure on them to lower the prices. Not enough, but it's a start.


An average oil executive owns six mansions, a dozen luxury cars, and five condos. Meanwhile some Americans can barely afford the gasoline to drive to work.
Yep, it went up by the damn speculators and going down now by them because the data shows increase in reserves.
A slight decline also fall in conjunction to Obama's pledge to sell 70 Million barrels of oil from the reserve, a strategy that helped drop the price of fuel during the energy crisis of '79.





Drilling may not impact the cost of oil in the long term for various reasons. One of the foremost is in a free market the oil does not necessarily have to be sold to America even if it is obtained. It will go to who is willing to pay the best price.





The increased supply will not be seen for 5-10 years even with a successful drilling project. Even when that crude is extracted America currently lacks the refining capacity.
Think about it, we wouldn't BE IN THIS MESS if it wasn't for speculators in the first place.





It's all about the driving season - I think the market timed it with 'Back to school date'
What's a poor liberal to do!? The Surge worked %26amp; we cant gripe about how bad the war is going, NOW the pump prices are coming down. We wont have ANYTHING to gripe about.!! BOOHOO Maybe the global warming will reverse %26amp; start an ICE AGE, now thats the kind of stuff we can pin on Bush!! OR maybe the Persid meteor shower will fall %26amp; cause a tsunami, we can blame him for donating too much to the UN!!