No Octane Suprise

My Brother Ronnie was asking why his local gas prices had just gone down so fast. He also wanted to know who sets prices and how. I don't feel like writing an in-depth essay on the petroleum market, but Ronnie needs to know that prices have dropped nation wide and with the midterm elections coming up the Republicans are thanking their lucky stars that prices are coming down. One thing is clear, people are happy that gas costs less. Is this part of Carl Rove’s October Surprise? People are suspicious.

From the Washington Post:
“A Gallup poll showed 42 percent of Americans believed the Bush administration had deliberately manipulated the price of gas so that it would decrease before the November 7 midterm vote. Internet blogs are filled with skeptics questioning the relationship between Republicans and big oil.
While both the White House and market experts dismiss the conspiracy theory, Republicans are relieved the days of $3 a gallon gasoline are over, at least for now.
"It's very difficult for Democrats to use this as a campaign issue when every passing week drops the price of gas a nickel or a dime," said Ed Patru, spokesman for the National Republican Congressional Committee.”

This from WXII and the AP:
“The retail price of gasoline has plunged by 50 cents, or 17 percent, over the past month to average $2.38 a gallon nationwide, according to Energy Department statistics. That is 42.5 cents lower than a year ago, when the energy industry was still reeling from the aftermath of hurricanes Katrina and Rita, which damaged petroleum platforms, pipelines and refineries across the Gulf Coast.
Fimat USA oil analyst Antoine Halff said there is no doubt that "the downturn in prices is welcome news from an electoral standpoint for the ruling party." But he scoffed at the notion that the U.S. president had the power to muscle around a global market.”

So what do we know about the fall in gas prices and their connection to the election? Nothing. But the media is trying very hard to discount the suspicions of a lot of people. They analysts may be right, Bush does not have the muscle to bully the Big Oil Companies around. But the Big Oil Companies have the muscle to bully Bush around. And it is no mystery why Big Oil has enjoyed record profits ($342.4 billion) since Bush has come into office with his administration made up of ex-oil executives. So it doesn’t take much of a stretch of imagination to imagine that the Big Oil companies want the big profits to continue for a few more years.
What is clear is that 42 percent of Americans are so suspicious of the Bush Administration’s motives and actions that they believe they are capable of manipulating gas prices just to gain a few extra percentage points in a tight midterm election. It is clear that America is losing its trust of this administration and its Big Oil buddies.

P.S.: Have you noticed that diesel prices are still over $2.68? While gas has fallen over 50 cents, diesel has only come down 30 cents. Why? Who knows, but I bet more voters use gasoline instead of diesel. Oh yeah, and over 80 percent of Big Oil political contributions go to Republicans with only 20 percent go to Democrats (and most of those are on key committees). But you make up your own mind.