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View Full Version : Americans look for political manipulation as gasoline prices plunge


Richard Tafoya
Sep 25th, 2006, 07:48 PM
AP:
http://www.usatoday.com/money/industries/energy/2006-09-25-gas-poll_x.htm?csp=15

There is no mystery or manipulation behind the recent fall in gasoline prices, analysts say. Try telling that to many. motorists.
Almost half of Americans believe the plunge at the pump has more to do with politics and the November elections, than economics.

Retired farmer Jim Mohr of Lexington, Ill., rattled off a tankful of reasons why pump prices may be falling, including the end of the summer travel season and the fact that no major hurricanes have disrupted Gulf of Mexico output.

"But I think the big important reason is Republicans want to get elected," Mohr, 66, said while filling up for $2.17 a gallon. "They think getting the prices down is going to help get some more incumbents re-elected."


According to a new Gallup poll, 42% of respondents agreed with the statement that the Bush administration "deliberately manipulated the price of gasoline so that it would decrease before this fall's elections." Fifty-three percent of those surveyed did not believe the conspiracy theory; 5% said they had no opinion.

...


The plunge in prices, Halff says, is the result of growing U.S. inventories of fuel, slowing economic growth and toned-down rhetoric between Iran and the United States, which has been critical of Tehran's uranium enrichment program.


The sell-off has been magnified, Halff says, by the recent retreat from the market of many speculative investors who got burned by the late-summer volatility in commodities prices. Just last week, a prominent hedge fund told investors it lost some $6 billion due to bad bets on natural gas prices.

Venisenvy
Sep 26th, 2006, 08:25 AM
It is so hard to get that point across to people that it is not manipulation. I have this discussion about 20 times a day when I'm working down at the gas station with customers. I'm able to convince most of them, or at least they seem to believe me but others not so much. There are so mnay people who would much rather jump to whatever conspiracy theory out there than to what makes the most sense that its slightly scary.

db44
Sep 26th, 2006, 09:09 AM
It's hard to get that point across because it is manipulation.

Prices went up on futures (they weren't supposed to) and they went up without futures as well. Last we heard, a month or two ago, was that prices were still going up, with the pipeline getting shut down.

Then, suddenly, a stash of oil is found? Suddenly the prices come down so drastically, two years of raises erased in a month? Where was all this "hidden" gas when prices went up, and why, if we're going to have to deal still with a shut down pipeline, are we still not keeping it in reserve.

Because, once we get to December (maybe they'll extend the low prices through New Years), suddenly the futures will miraculously pop back into play and $3.00 will be the low-end of gas prices once again.

The futures with the pipeline... I'm not sure of the timing of that, but when prices start rising, suddenly we'll be reminded of the issue.

So far, my hypothisis has held true... Will you believe it if my model above holds true?