Gas prices drop as we close in on election day

I read in The Economist (a British publication) that there is ALWAYS a gas price drop around now. They expalined it was due to decreased demand (summer over) and not yet a increase for heating oil in winter.

Let's see....October/November, what ELSE is going on during this time OH YEAH...elections.

Cause and effect is not as simple as some think. If elections were in July, we would be saying "Hmmm, everytime there is an election, prices go UP!!!!!.

So, check fuel prices worldwide before you buy into this myth. I also always seem to hear this theory badied about ONLY when the Republicans have been in power.

 

<div class='quotetop'>QUOTE(Schmika @ Oct 13 2006, 09:58 PM) [snapback]332561[/snapback]</div>

Looks like the theories are about to disappear for a while then....

 

<div class='quotetop'>QUOTE(Schmika @ Oct 13 2006, 08:58 PM) [snapback]332561[/snapback]</div>

HMMMM. who's a republican here, thank God their only in power for just a short time, tic,tic,tic,tic....

 

If you really want the truth:
http://www.kellerkomments.com/2006/10/gaso...nipulation.html

 

<div class='quotetop'>QUOTE(yups @ Oct 13 2006, 11:26 PM) [snapback]332597[/snapback]</div>

How can you say "if you really want the truth".....who says this persons opinion is the truth? This is a case of "it is the truth because it is what I want to believe".

 

<div class='quotetop'>QUOTE(Schmika @ Oct 14 2006, 12:48 PM) [snapback]332800[/snapback]</div>

Didn't gas prices tick up right before the 2004 election? I'll have to look again.

Usually the story, told at the beginning of the summer, is that the big bad oil companies are holding back so the prices will rise. And for years I always thought it funny that there were no nut-job conspiracy theories from the tin-foil hat crowd when the prices dropped. Now there is, so I guess I can't use that line next spring when gas prices rise again.

 

<div class='quotetop'>QUOTE(fshagan @ Oct 15 2006, 02:59 AM) [snapback]332947[/snapback]</div>

Gas prices dropped before the 2004 election.

 

Don't fall for the lower gas prices. The Repugnicans will do anything, ANYTHING to stay in Power. They will go up again - say mid-November.

 

<div class='quotetop'>QUOTE(Prius The First @ Oct 15 2006, 10:09 AM) [snapback]332962[/snapback]</div>

Interesting that Bush mentioned in one of his speeches that gas prices are down. Come now , one of the reasons I got the Prius was I got tired of the gas price game. FishHawk

 

<div class='quotetop'>QUOTE(Prius The First @ Oct 15 2006, 09:09 AM) [snapback]332962[/snapback]</div>

Don't kid yourself. Almost any politician will do anything to stay in power.

 

<div class='quotetop'>QUOTE(msnancy61 @ Oct 13 2006, 08:53 PM) [snapback]332559[/snapback]</div>

I can't help but believe there is a connection between gas prices and the upcoming election.

1) It was primarily the Dems who were talking about an investigation into price gouging and about windfall taxes on the oil companies.

2) Dems will be more inclined than Republicans to increase minimum mileage rates on US auto makers.

3) Dems will be far less likely to expand domestic oil exploration opportunities.

4) Oil prices dropped 25% ($80 to $60/barrel), but gas prices dropped 33 1/3% ($3.00 to $2.00/gallon).

Expect headlines in November announcing that oil prices are on the rise due to unexpectedly high demand for heating oil. US oil companies don't control the international oil market, but they do control their profit margin. That leaves them some room to manipulate prices. It is in the financial best interest of US oil companies to see the Republicans remain in control of congress. Personally, I'm not voting for any incumbents, regardless of party affiliation. My Prius is my insurance policy against gas price hikes.

Just some thoughts from the tin foil hat crowd.

 

It shocks me that people actually think that one person or one political party can have any impact on a global market for a fungible commodity. Sure there is a link with gas prices being down in oct or nov but it is totally irrelavant that elections are then. If elections were in July you would see a pattern of high gas prices at election time.

Energy prices drop at this time of year because the summer driving season is over and the heating season has yet to get into full swing. Its a matter of excess supply over demand.

In recent years this trend has been exagerated due to the commodities markets that is full of speculators that over bid it up in the heard mentality and then you hit a bust and they bid it down lower than pure supply and demand would cause it to fall. This year we had a huge hedge fund that caused the natural guess market to collapse as they had to cover short positions that they over controlled.

There is no conspiracy - its pure supply and demand.