On Friday, we reported that gas prices had tumbled from an early-April peak of $3.93 per gallon to a $3.80 per gallon national average. Since then, the national average has fallen another few cents, but the media who happily bantered about the political consequences of rising gas prices on President Obama‘s reelection prospects have, thus far, remained silent about this drop, which coincides exactly with the President’s remarks about reining in oil speculators.
The national media, especially Fox News, were quick to report that the sky was falling when Republicans tried to make rising gasoline prices a political liability for President Obama. The conversation dominated political news for weeks, as the national average gasoline price peaked at about $3.93 per gallon. Since President Obama“waved the tar baby” of oil speculation on April 17, though, gas prices have fallen from a national average of about $3.92 on April 16, to less than $3.78 per gallon today, and are expected to plunge below $3.50 by July. (It’s worth noting that even the Obama-era peak of $3.96 per gallon is still lower than the $4.12 per gallon national average under George W. Bush in the summer of 2008.)
Of course, correlation doesn’t equal causation, and some are even trying to spin lower gas prices as a negative for President Obama (hello, Murdoch-owned Wall Street Journal), but if rising gas prices are the President’s fault (at least when his name is Barack Obama), then falling prices at the pump ought to be a positive. While most people agree that there isn’t much a president can do to affect gas prices, the current drop isn’t being chalked up to supply and demand, but to the psychology of the oil futures market.
So for those of you keeping score remember:
Gas prices go up, President's fault.
Gas prices go down, President had NOTHING to do with it.
So obviously this drop cannot be credited to the fact that oil production in America, as a direct result of this President's policies, is the highest it has been in eight years either. Right?
In other news the President was seen walking on water. Credit given to water for working so hard to make him look good.
The national average gasoline price peaked at about $3.93 per gallon; whereas under GWB it peaked at $4.12 - yet Sarah Palin calls O'bama the $4 a gallon President.
ReplyDeletePalin: Let me speak specifically about a credential that I do bring to this table, Charlie, and that’s with the energy independence that I’ve been working on for these years as the governor of this state that produces nearly 20 percent of the U.S. domestic supply of energy, that I worked on as chairman of the Alaska Oil and Gas Conservation Commission, overseeing the oil and gas development in our state to produce more for the United States.
Fact Check: Alaska produces just over 14 percent of all the oil produced in the U.S., leaving out imports and leaving out other forms of power.
Yeah, math is hard huh Sarah? Not your strong suit, even under the subject you claim is your qualifications for any kind of leadership whatsoever.
By the way energy expert, what do Alaskan villagers pay at the pump all the time in your oil producing State? We wish we could pay as low as $4 a gallon.
oil markets are rigged i HOPE everyone realizes that.
ReplyDeleteand the price of oil is pure profit.
if supply and demand were involved why has the price gone up while demand is down 30% world wide?
obama could have prevented all this by executive order.
the real price of gas if TRUE market conditiond applied and not out right theft??
1.20 cents A GALLON AT THE MOST!
obama could have prevented all this by executive order.
Delete~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Please...don't.
You're embarrassing yourself.
Yep, I've noticed how gas prices have come down.
ReplyDeleteIt was seventy degrees, but the water was frozen… Mitt would say that and not blink an eye.
ReplyDeleteGryphen,
ReplyDeleteGreat post. There is one thing the President can do to reduce the price per gallon. Oddly enough it involves the speculators. There's an article on it in the Global Research (www.globalreasearch.ca) site. If President announces we will not join Israel when they attack Iran, it removes the incentive to invest in oil futures. Oil speculators are banking on Israel (and its ally, the US) attacking Iran, thus raising US gasoline to at least $5 a gallon and higher.
aj Weishar @ 7:03 a.m.
DeleteNow that is a thoughtful attempt at schooling IM'ers on oil speculation and how it affects gasoline prices; whereas JadeZ @ 6:31 a.m. just sounds crazy.
It's short term thinking at best. Long term thinking is understanding that the US needs to maintain control over the ME and it's oil resources. If Iran gets it's nuclear deterrant then that ends and the ME oil rich countries then become powerful enough to control their own future. Iran becomes big brother for the Muslim world but will obviously not become aggressive with it's nuclear capability. It will only make it clear that it has the defence it needs to prevent US aggression.
DeleteAnd so, Obama will not do anything to lose the initiative in the ME. That's the cold hard truth!
Now, understanding that a little bit, do you people still want to end your ME wars? I do! Will you stand with me on that?
Everyone remember a few weeks ago when gas prices were headed to $9 a gallon?? At least that's what the knuckledraggers on the right were telling us.
ReplyDeleteThey were also telling us:
Romney: “He gets full credit or blame for what’s happened to this economy and what’s happened to gasoline prices under his watch and what’s happened to our schools and what’s happened to our military forces — all these things are his responsibility while he’s president.”
Boehner: “But if the economy doesn’t get better, I don’t think he’ll win. If people don’t feel better about government-run health care, I don’t think he’ll win. And if gas prices are $5 or $6, he certainly isn’t going to win.”
I won't even bother you with what Fox said, 24/7.
But now . . .
. . . gas prices have fallen from a national average of about $3.92 on April 16, to about $3.80 per gallon today, and are expected to plunge below $3.50 by July.
And, of course, RMoney, Boner, Faux, and the "MSM" are all over this story.
Right??
http://www.dailykos.com/story/2012/05/07/1089635/-Media-GOP-give-Obama-credit-for-drop-in-gas-prices-right-
Willard RMoney will claim it was his idea , just like the auto bailout and the killing of Bin-Laden.
ReplyDeleteSigh.
Really?? Our gas here yesterday was $4.19/gal. I do not blame our president. He doesn't really have anything to do with gasoline prices, IMO.
DeleteYou must be in CA too...that's what I just paid to fill up. To be fair, though, the state of CA has some very high taxes on fuel.
DeleteCali is expensive.
Deletejust the way it is.
I personally don't care who's responsible for falling prices; I'm just happy that it's less than $90 to fill my tank! Spending two benjamins a week on gas was not my idea of a good time!!
ReplyDeleteYour best writing yet: "President walks on water..." and etc. Wonderful!
ReplyDeleteTHe Water was supported by ACORN!!!!
DeleteYour best writing yet: "President walks on water..." and etc. Wonderful!
ReplyDeleteI'm sure $arah will be calling the President to apologize any second now...
ReplyDeleteIf a Republican WAS president, the GOP would have skywriters, billboards, and television ads taking credit for the price change.
ReplyDeleteI am an Obama fan; however, the price of oil has nothing to do with the increase in production since he took office and everything to do with speculation. If you watch it, which I do because I have money invested in it, the price / barrel goes up every year and falls off when it hits the consumer "choke" point. Every year. Don't cook a frog too fast or he'll jump out of the pot.
ReplyDelete