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McCain credits Bush for drop in oil price

Republican John McCain on Wednesday credited the recent $10-a-barrel drop in the price of oil to President Bush's lifting of a presidential ban on offshore drilling, an action he has been advocating in his presidential campaign.

Ahhh... the "magic" of commodity speculation. Wave a magic wand that won't actually effect domestic oil supplies for at least 7 to 10 years and get immediate results.

I personally think it is the 2 month ban on traffic in Beijing for the Olympics... or maybe it is T Boone-Pickens threats to make all cars in the US run on natural gas.

... or maybe it's the new dark chocolate M&M's. Yeah... that's the ticket.

Ain't magic wonderful !
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(NT) Maybe Al Gore did it

In reply to: McCain credits Bush for drop in oil price

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Speculators are speculating on future prices, sooo....

In reply to: McCain credits Bush for drop in oil price

Wave a magic wand that won't actually effect domestic oil supplies for at least 7 to 10 years and get immediate results.

The reasons of course are varied and complex, but there ain't no "magic" to it. Limiting traffic during the Olympics may be a tiny factor, but Bush's lifting of the ban and the general public outcry to drill are at least as significant, if not more so.

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It's amazing how some cannot see a cause and an

In reply to: McCain credits Bush for drop in oil price

effect. Unless you were in an alternate reality, the President did not wave a magic wand. He acted as a leader to start the process of increasing the domestic supply of oil in the US. Futures markets responded accordingly. Of course, you can always deny that oil prices have not been dropping steadily since the President's news conference. Perhaps, in your world, they haven't dropped.

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My gas prices have remained unchanged.

In reply to: It's amazing how some cannot see a cause and an

After all, the gasoline price is what we all complain about. Oil could be a buck fifty a barrel, but if I still pay $4.10 a gallon at the pump...

You know, the initial upswing in gas prices wasn't even brought about by the cost of a barrel of oil. It was brought about by a hurricane cutting refinery capabilities. So I have to ask... how many oil companies pledged to build new refineries after the president's announcement?

What was that ??? You say ZERO domestic oil companies have decided to build new refineries ? Wow... how unpatriotic of them, not to have confidence in the president.

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Gas prices here have dropped drastically....

In reply to: My gas prices have remained unchanged.

in the last week....and I believe that is true across the country.

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You want I should take a picture ?

In reply to: Gas prices here have dropped drastically....

I was driving through 4 different states last week. All of them had considerably cheaper gas prices. The lowest I saw was $3.80 in Staunton, VA. In Ohio, they are suggesting Gas prices will drop down to $3.50 by the end of summer.

http://www.columbusdispatch.com/live/content/local_news/stories/2008/07/23/gas_prices_drop.ART_ART_07-23-08_A1_HCAQPTP.html?sid=101

Sadly... a combination of high state taxes, poor supply lines, and possibly some opportunistic price fixing has kept the cost of gas constant at around an average of $4.10 since about 3 months back.

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So are gas prices dropping or aren' t they?

In reply to: You want I should take a picture ?

Not at all clear. Maybe they are staying the same where you are, but they are dropping elsewhere?

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You got me...

In reply to: So are gas prices dropping or aren' t they?

... cost per barrel is down. How long it takes to trickle down to the pump - and who gets the best price - is too chancy for me to guess.

It would not surprise me to see gas prices go up because of any damage the current hurricane hitting the gulf coast may cause.

Too many variables to have anyone, let alone John McCain, start assigning any "atta boys" for any one contributing reason for the oil market right now.

JMO

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Prices are down a few cents here

In reply to: You got me...

I wouldn't use the word "drastically" though. The real rub is that if prices get down to around $3.25 people will consider it a bargain and the oil companies will get to laugh some more.

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What makes you think the oil companies are laughing?

In reply to: Prices are down a few cents here

The amount they get per gallon is not likely to change very much.

$3.25 would be a bargain. What do you think the price should be? Why?

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They'll be laughing because...

In reply to: What makes you think the oil companies are laughing?

...we'll all be thinking $3.25 is a bargain, which would allow them to increase their profit margin without as much complaint as it would have gotten a year ago.

The price should be roughly $2.50 which is about where it was before all this craziness started.

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(NT) What craziness?

In reply to: They'll be laughing because...

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I don't follow...

In reply to: They'll be laughing because...

I don't follow, Josh. The current price for crude is $127 a barrel. That means $2.86 a gallon for the crude. How can they buy it for $2.86 a gallon, refine and sell it for $2.50, even if refining yielded 100 percent of the raw material as gasoline output?

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I don't know how accurate this is...

In reply to: I don't follow...

A few weeks ago, I saw a breakdown of the price of a gallon of gas based on original price of oil, refining costs etc. etc.

Manufactures' cost as it left the refinery and headed for the middle man (if any) was around $3.40. Now that figure did not mention what kind of profit margin was involved... it just stated that before transportation, state and federal taxes, and any added profit was figured in, the average cost was that price (when a barrel of oil was around $135 - $140).

The figures did not take into account the fact that it takes time for oil bought at a lower or higher price to reach the pump. Consequently, there is plenty of times where the cost of the gas you are putting in your tank right this second had much lower production costs than what the price actually reflects.

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That makes little sense..

In reply to: They'll be laughing because...

Profit margin on gas is very small and has remained pretty much the same for years.

How did you derive the $2.50 figure? What is it based on? Why not 28

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Atlanta is down...

In reply to: You want I should take a picture ?

The price in Atlanta is down, they just did a story about the drop on local TV. I was out a couple of weeks ago and it was $4.11. The story said it's down to $4.02. Note: the taxes and supply lines didn't change during that period.

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I guess things arrive slowly in WV.

In reply to: My gas prices have remained unchanged.

Prices are declining here with the media commenting on how fast the cuts are coming through to the pump.

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Well, I will keep my fingers crossed.

In reply to: I guess things arrive slowly in WV.

You know, the odd thing about the past 6 - 7 months, as far as gas prices in WV goes... is that in the past couple of years, WV usually had lower gas prices than the national average. But for the past half year or so... our gas prices suddenly were always at least 10 cents higher or more than the states surrounding us.

Who knows why ? I don't.

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In Martinsburg...

In reply to: Well, I will keep my fingers crossed.

In Martinsburg (in the panhandle) it's going for $3.83 in the Sheetz stores (a 7-11 type chain). Must be something about Morgantown.

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Morgantown is the most expensive city to live in

In reply to: In Martinsburg...

Martinsburg has the most expensive houses though, since that city has essentially become a suburb of the DC area. I imagine that proximity (and the much lower cost of gas in VA) is a contributing factor to why the costs may be so much lower.

As I said, driving through Staunton, VA last week, I saw gas going for $3.80.

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Had a thought..

In reply to: Morgantown is the most expensive city to live in

I had a thought, could it's being a college town be a factor? That gave me an idea. I thought, and came up with another small college town with a big city not too far up the road.
I thought of Hattiesburg, Mississippi (University of Southern Mississippi) and Jackson, Mississippi (State capitol). The results were $3.64 in Jackson, and $3.85 in Hattiesburg. 21 cents more in the college town.

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Very good insight !

In reply to: Had a thought..

Actually (it's not PC to say this, but it's true) Morgantown has become a small part of New Jersey, New York, etc. A large percentage of the kids at the university come from those areas because it's cheaper to come here and pay out of state tuition, than it is to stay at home and go to comparable quality local schools. Consequently, morgantown has much the same cost of living that you would find in some of the smaller urban areas. Thank goodness we don't pay NYC rates though !

Living 7 miles out of town, the closest gas station is an Exxon. It offers the $4.10 rate right now. The closer you go into town, the higher the price goes... even at the so called discount quickie mart style chains.

I meant to say earlier that Morgantown is the most expensive city in the state to live in, by a recent survey.

I just looked at a gas price widget I have on my desktop. $3.97 is the cheapest in a 20 mile radius... if you want to drive up to Uniontown, PA. In town, the local Sam's club is showing $4.05. Of course all prices don't reflect the additional .99 of a cent that pretty much is an extra penny.

Wink

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Just bought gas...

In reply to: I guess things arrive slowly in WV.

Down 6

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