Why is the price of oil falling?

After a record run up, the price of crude oil has now declined to $118 a barrel.





Is this because:





1) Republicans have called for drilling in the Arctic National Reserve





2) Democrats have called hearings about oil company profits





3) The Law of Supply and Demand has not yet been repealed by either





What conclusions may we draw about the intelligence, honesty and integrity of Democrats and Republicans from this?

















Why is the price of oil falling?
law of Supply and Demand is alive and strong. Demand has dropped somewhat, which is the best way to lower the price on a commodity.





Why is the price of oil falling?
The recent decision by OPEC (Oil Producing Nations' Group) to release more crude oil into the world market, has been the main 'driver' behind the price reduction. Power always rests with those who own the resources that others depend on. Report Abuse

The whole ';reduced demand in the US'; theory falls a bit short in my book, because while there may have been a slight decrease in US demand, the overall global demand continues to increase.





The drop took place just after there was a presidential call for more domestic drilling. There is an obvious connection there, but it's not enough to explain all of the drop.
The driving season is almost over - that's why they are speculating the ';demand'; will be lower thus the investors/speculators are pulling out their investments before it drop further.





Congress or the presidents didn't do anything to stop the speculation/gouging, it's the ';cycle'; . It will spike up again once we near winter time due to ';demand'; going up thus speculators want to make a quick buck.
because the new president is coming. When elected, congress finds a way to decline these things to make it seem like they are doing a good job. They know EXACTLY how to end this - they just want us to have issues so that we can choose the one who best seems to solve them.
Supply and Demand. We've seen the largest decline in oil use in years. The rhetoric in the middle east has also calmed down.
Less demand for gasoline, some many millions of miles less driven this year over last. Got this on the news this morning.
Because drilling will be starting soon.
Greed ran it up and made a few pooer!
We got an election coming up.....everyone knew it was gonna happen...