Gas Price Conspiracy

The comment section strikes again! I posted a link on my Facebook page yesterday from The News Hour on PBS discussing the recent decline in gas prices. The actual discussion was not very informative due to the short length of exchange between the host and an energy and commodities reporter with Bloomberg News. It is a fact worth reporting that the gouging has decreased by 40 cents, equating to "a $500 or $600 tax cut for every household." That being the profit tax of the oil industry levied after 9/11 and just ignored by politicians ever since. The participants breeze over a few contributing factors without much detail. Perhaps this is why the commenters took the initiative to offer some fun and fanciful explanations of their own imaginations.

I have always found the correlation between the noticeable drop in gas prices the proximity to elections rather fascinating. Whether by accident or design the phenomenon defuses the profit tax and associated problems with energy as campaign issues. But my imagination has always been rather limited. So let's have a look at some of the more exciting/ominous reasons for relief at the pump.

This all about Russia - Putin needs to go, so there is a deal between Obama and OPEC. Low as we can go - let them bankrupt Putin's Russia.

MAYBE ONE REASON IS THAT SINCE THE ISIS TOOK OVER SOME OIL WELLS IN IRAQ THEY BEGAN TO SELL OIL AT A VERY MUCH LOWER PRICE THAT CONSUMERS RUSHED TO BUY FROM THEN SECRETLY....

Here's why in a nutshell.The Gulf monarchies are flooding the market to bring the price of oil down so "Fracking" isn't profitable.They want to put the American and Canadian companies out of business.Because a lot of debt is incurred while producing oil through fracking,and it's more expensive to refine oil in "tar sands",all the monarchies have to do is keep up the increased production until the "frackers" go bankrupt. With the "90 day corporate mentality" we have here in the States,it won't be long before the monarchies achieve their goal.When we stop our expensive oil production,they'll go back to their OPEC quotas and raise prices.They have enough reserves to put every "fracking" wildcatter out of business.

 Previous explanations of why the price of gasoline remained high even when crude oil prices fell, usually included the lack of capacity to refine more. Have we suddenly built more refineries? Not that I have heard about.
Over the past several election cycles, I have noticed a pattern between fuel prices and the party which holds the White House. As election time nears, if there is a Republican president, fuel prices increase before the election. The opposite holds true when there is a Democrat in the White House. the tie-in is usually not as strong for mid-term elections as during a presidential campaign.

 Four things control the price of every thing. Not in any order of significance. Supply, demand, delivery cost, politics. A week after the elections the price will go up to cover the loss, plus fifty percent. As with anything the more you sell, the item price goes down, so when electric cars are the standard transport and petrol based vehicles wane the price for petroleum will sky rocket. Democrats will have sold their soles to get this price drop just before a critical election looms. One payoff I bet on will be new pipelines from the fracking sites to the east and west coasts. Just watch the laws and regulations melt away. This is funnier than a dropped match in a fireworks factory.  

 Also, note that Middle East turmoil, such as is now occurring in Syria and Iraq, plus sanctions on Iran, would traditionally send the price of crude, and of gasoline up quite high, are having no effect now.
Argues strongly that politics has more to do with the price than market forces.

 the magic number they used to use was $65,was what they needed to make a profit
then they said $90,now they say $83
speculators have added $20 to the price
they told us that if we export American oil prices will drop,because speculators are awash with oil with no place to send it,look at the big wall st firms profits,a lot of that is from oil
even at this price your going to see more electric cars on the road,or hybred,
I also agree with the comment below its an election year,so they drop the price of oil until its over,
Saudi cant drop output as it has to keep the natives happy,so they don't overthrow the royal family,they need the money,

You get the idea. I did not copy links that some included but you can find them in the original. Isn't it awesome that PBS has so many budding geopolitical strategists they can tap?

As Powers Boothe said to Lea Thompson in Red Dawn, "you've just seen too many movies darling."