Oil Prices Drop Just in Time for Election

Bush and his neoconservative friends are threatening to go to war with Iran and yet, coincidentally, the price of oil drops just in time for the election. Given the cynicism of Bush and his oil pals, the possibility of manipulation is the first thing that comes to mind. Joe Benton of Consumer Affairs also wonders what's going on:

Gasoline prices have dropped to $2.50 a gallon or less in 14 states and prices just keep on falling. Just one year ago the price of a gallon of gasoline was over $3, setting new records nationwide.

Now why would that be?

Cynics and Washington insiders will suggest to you without much hesitation that gas prices are sure to rise again in a little more than 60 days -- right after the midterm Congressional elections on November 7.

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...Big Oil is out in force talking down oil prices and promising there is plenty more oil to go around. And get this -- the oil companies are saying a barrel of oil just plain costs too much.

None other than Exxon Mobil chairman and chief executive officer Rex Tillerson now claims crude oil prices at around $75 a barrel are undermining economic growth in countries around the world, not to mention the U.S.

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Lots of oil? that would be news to the U.S. Energy Information Agency, which earlier this week forecast another year of rising demand with only a limited increase in supply. According to EIA, worldwide petroleum consumption should grow by about 1.2 million barrels a day in 2006 and 1.7 million barrels a day in 2007. In 2005 the world used about 84 million barrels of oil a day.

EIA forecasts oil production capacity will increase only slightly in 2007, all of which will come from Saudi Arabia.

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Could it be that there is some hidden agenda or lurking factor driving down pump prices? Could it be that after a year of charging consumers all their wallets could stand, Exxon Mobil sniffs an important election not far away?

We have two oil executives in the White House who refuse to develop an honest energy policy. Now there are a number of honest people in the oil business, and in the oil technology area there are some brilliant engineers and scientists, but there are still plenty of Kenneth Lays trying to keep Republicans in power and maximize their corporate profits through government favors at the expense of the American people and our future (don't ever forget Kenneth Lay's energy price manipulators bragging about socking it to Grandma Millie; many of those guys were never caught). After November, no one should expect the prices to stay down. If Bush goes to war with Iran, figure on $100/barrel and $5.00/gallon.