What Just Happened With The Oil Crisis?

Posted by guest blogger Locutisprime and cross-posted at The Borg Perspective.

The price of oil recorded its biggest weekly drop ever, and a gallon of gas finally pulled back from its record high. So is it time to declare the energy bubble popped?

Experts won't go that far just yet.

"It's too early to say we've seen the worst of it," said Tom Kloza, publisher and chief oil analyst of the Oil Price Information Service in Wall, N.J. "We would be Pollyannish if we believe one week represents a trend."

Still, with oil recording yet another drop on Friday, some industry experts who just days ago thought there was more juice left in oil's meteoric run are reconsidering.

If this is not the bubble's implosion, than it's a reasonable facsimile," analyst and trader Stephen Schork said in his daily market commentary. "Time will tell. Nevertheless, for the time being we no longer care to hold a bullish view."

Light, sweet crude for August delivery fell 41 cents Friday to settle at $128.88 on the New York Mercantile Exchange — well below its trading record of more than $147 a week earlier.

The average price of a gallon of regular gas fell about a penny for the day, to $4.105, according to auto club AAA, the Oil Price Information Service and Wright Express. Diesel prices dipped three-tenths of a cent to $4.842 a gallon.

- Fox News

The price of crude oil drops more in one week than it has in the history of oil trading and pricing period? And the mainstream media seems to not only care less....but they have yet to make the connection. Could that be no more complicated than the twin realities that are as obvious as the nose on their faces?

Early last week, President Bush lifted the executive ban on drilling in ANWAR  and along the American continental shelf. Remember, that was the same executive ban that Nancy Pelosi said two weeks ago, was the major impediment to lifting the ban on drilling period. Never the mind, that the congressional ban remained in effect then as it does now and that it is the real blocade to any development of our own resources of oil domestically.

Many economists and other politicians, have stated categorically that if the ban was lifted and we were allowed to pursue our own resources, that action in and of itself would result in an immediate reduction in the price of oil by $50 - $60 a barrel. But the nay sayers of the loyal left, continue to trumpet their purposely false belief and representation , that "America cannot drill itself out of this oil crisis."

So what happened with the drop of the price of oil, in less than three days from the time that President Bush lifted the executive ban... That's right, the price of oil dropped $20 a barrel. The largest price drop in history. So what would happen then...if congress were to lift the ludicrous ban on drilling in the tundra wasteland of ANWAR? And along the Florida and Gulf coast?

Do the political math folks. The price of oil would drop to at least $60 - $70 a barrel withing two weeks. The democrats know this. As they know that any precipitous drop in the current price of oil by lifting the ban, would result in the realization of the American people, of who has actually been the obstructionists behind what has led to this crisis to begin with.

Take unregulated oil speculation and the absurd ban on drilling for our own domestic supplies of oil out of the equation, combined with a free market economy? And the democrats are immediately revealed as the real phonies masquerading in the wizard suits behind the curtains in congress. The American people deserve better from their representatives on both sides of the isle, but the one's really turning the screws on the American people concerning oil, are not the evil rich or the oil companies. The one's responsible are the friendly neighborhood supposedly progressive liberal democrats. The same ones that are presently fish mongering the red hearrings and foisting the socialist reworked new deal proposals of one Barack Obama.

Americans need to be screaming at their elected representatives. And they need to be screaming so loud into the congressional office phones and those in the senate and with emails and letters, that these self serving political partisans have no choice but to listen. Either that or face the music come November in the general elections.

Write and call your congressmen and senators. Let them know that you know what is going on and who is responsible. And that you will remember who your real tormentors are come November.

           

Comments

[Morgan K Freeberg]

Of course you realize, the one thing that is particularly special about this issue, is that the democrat party has been so thoroughly softballed that you can follow the news all day and all night and not even have a clear understanding of what their goals are. Do they want the price of gas to go down?

It's not reasonable to debate with the democrats what they're willing to sacrifice to make this happen, if nobody's even going to ask them the question about whether they want it to happen. Obama said his main beef with the prices going up these last few months is that it happened too quickly. Did he say a little bit more than he was supposed to?