Fuel prices and election

Discussion in 'Politics, Religion, Social Issues' started by DakotaGuy, Dec 22, 2006.

  1. DakotaGuy macrumors 68040

    DakotaGuy

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    #1
    Does anyone else think something was fishy about the fuel prices around election time last fall? They began to fall rapidly in the weeks and days leading up to the election and now are on the rise again. Sure it could be coincidence, no doubt about that, but it just seems fishy to me. I am not one to believe in conspiracy theories, but it just seems like the election was the low point in fuel prices and since they have been on the rise again. I think the powers that be might have more power to manipulate things then we think.
     
  2. dukebound85 macrumors P6

    dukebound85

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    #2
    i too have noticed that. once the elections were done, no more drop in price
     
  3. stillwater macrumors regular

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    #3
    That thought occurred to me too at the time, but even if the oil companies were trying to help the Bushies, the American people didn't fall for it.

    Also, I don't recall any republicans trying to take credit for low gas prices prior to the elections.
     
  4. yg17 macrumors G5

    yg17

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    #4
    I noticed that too. Definitely does seem fishy
     
  5. nbs2 macrumors 68030

    nbs2

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    #5
    I wouldn't be surprised if the drop was something quite less sinister, but still related. Remember that the world economy, including the cost of oil, always shifts after an American election.

    Why it would go up rather than continue down? I don't know.
     
  6. Queso macrumors G4

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    #6
    Doesn't the price of oil always go up when the Northern Hemisphere heads into winter?
     
  7. NJuul macrumors 6502

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    #7
    It was actually reported in the news in Denmark (my country) that the price of gas in the US was tightly linked to the elections, as lowering the price makes people fell that things aren't as bad and have a tendency to not vote against the present government.
    The price of oil is not really given by oil companies, oil is the ultimate strategic ressource and its price is greatly be influenced by actions taken by politicians to ensure a constant supply.
    The US president is the most powerful politician in the world...
     
  8. Dont Hurt Me macrumors 603

    Dont Hurt Me

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    #8
    Oil companys did something, oil was low until the next week then it went up. Tell me they cant manipulate this and ill call you a liar. They control how much is pumped, how much is brought to market and how long oil sits in tankers. They also control the politicians like Iam a christian lets get into a needless war Bush Jr.
     
  9. yg17 macrumors G5

    yg17

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    #9
    The dumb ones are always the powerful ones :(
     
  10. panoz7 macrumors 6502a

    panoz7

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    #10
    I had the feeling that something fishy was going on but have since changed my mind.

    In my area at least (North Carolina) the prices dropped significantly until about two weeks before the election. They flattened out at around 2.05 (hit 1.99 briefly) and slowly started increasing. By the time the election came around they had hit 2.20. They've gone up slightly this week but I noticed they dropped a little today... pretty much they've been around 2.20 the beginning of december.

    Bush was very careful earlier to separate himself from the gas prices. I seem to remember him saying something around that time when gas prices peaked about how the government had very little control. When the gas prices started dropping there wasn't much he could do to take credit for it considering he had already said it was impossible for him to do something... not that I'd put it past him to try.

    I also remember hearing a story on NPR about how very little credit for the lowered gas prices was being given to bush, even by republicans.

    It wouldn't surprise me if the oil companies did try something though... it's obviously in their favor to keep the republicans in control. Perhaps they noticed that the lower prices weren't having the planned effect and were costing them too much.

    On a side note, my parents are in retail. One interesting possible consequence of the election is that we've been having one of our best holiday seasons ever. So far our sales have been comparable to those in 1999 before the millennium... and probably for the same reason; our customers are happy. We sell art, and judging by how well the anti-bush stuff in our store sells, the majority of our customers are liberal. People seem to be happy after the election and they're buying more.
     
  11. pseudobrit macrumors 68040

    pseudobrit

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    #11
    It's not controlled by the government or oil companies (not directly, anyway).
    Start where the price is set at the Merc and NYMEX and follow the money to find the answer.
     
  12. NJuul macrumors 6502

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    #12
    Interesting...

    Weekly U.S. average price for Super Unleaded between August 21st, 2006 and November 20th, 2006, according to this site.

    Aug 21, 2006: $3.08
    Aug 28, 2006: $3.01
    Sep 04, 2006: $2.90
    Sep 11, 2006: $2.79
    Sep 18, 2006: $2.67
    Sep 25, 2006: $2.54
    Oct 02, 2006: $2.48
    Oct 09, 2006: $2.43
    Oct 16, 2006: $ 2.40
    Oct 23, 2006: $2.39
    Oct 30, 2006: $2.41
    Nov 06, 2006: $2.39
    Nov 13, 2006: $ 2.42
    Nov 20, 2006: $2.42
     
  13. NJuul macrumors 6502

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    #13
    That is correct, however, the availability of oil and the predicted availability of oil dictates the price, so if mr. Bush can convince the saudi crown prince to increase production for 6 months, prices fall. If Bush decides its in the interest of the Iraqi people to sell more oil per day, prices fall. The same is true for a change in policy for e.g. the US strategic petrolium reserves. Say they are set to increase, oil will be bought to fill the reserves, prices rise. Decrease, prices fall. If the terms to borrow oil from the energy reserves are made more strict, oil prices will increase greatly. Start a war with Iran, markets will get very nervous and the prices will soar. Politicians have a great deal of influence on the price of oil. Indirectly.
     
  14. clayj macrumors 604

    clayj

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    #14
    I have tin foil hats for all of you. :rolleyes:

    People drive less in the fall. Less demand = lower prices. Geez.
     
  15. pseudobrit macrumors 68040

    pseudobrit

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    #15
    But beyond that, there's a lightly regulated futures trading monster that often seemingly arbitrarily sets the price of crude.
     
  16. Music_Producer macrumors 68000

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    #16
    Nothing fishy about it.. I told my wife months before the elections.. that gas prices would go down as the elections approached.. and they would start going back up after. The corruption in this administration runs deeper than you think. It's about time people started figuring things out.
     
  17. solvs macrumors 603

    solvs

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    #17
    Yeah, but it's still another thing we can be mad at the administration for. Their actions have helped drive prices up. No tin foil conspiracy needed.

    There are a lot of reasons, but he is certainly one of them.

    Edit: Chart. It is odd that it goes down so much before the election, than back up. But the real problem is how high it goes in 2002-03. Even given inflation. Wonder what happened at that time to make it go up so high. :rolleyes:
     
  18. Desertrat macrumors newbie

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    #18
    Economics 101. Higher gasoline prices led to less driving. Less driving meant less demand, which led to increases of refined fuel on hand and crude oil in storage. Higher inventories always mean lower prices.

    (Item: Visitation in Big Bend National Park is down 10% compared to 2005. And, there are far fewer RV snowbirds showing up in this area, this season; fewer RVs all year long, for that matter.)

    May through September is the high-miles driving period. After school starts, there is less tourism. Since elections come two months after the end of the high-miles period, it's natural that "Prices always fall before elections."

    'Rat
     
  19. mrkramer macrumors 603

    mrkramer

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    #19
    The United States government controls very little of the world's oil supply so they do not control the prices. The prices are controlled mostly by OPEC which does not include the US. The prices went down because there was less demand at that time and then we started getting close to the holidays and people started to travel more, so there was more demand and the prices went up.
     
  20. Dont Hurt Me macrumors 603

    Dont Hurt Me

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    #20
    Its interesting how oil prices dropped when these billionaire CEO's were hauled in front of Congress. To say the ones who pump it, refine it ,ship it , and manipulate it have no say whatsoever is absurd at best.
     
  21. KingYaba macrumors 68040

    KingYaba

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    #21
    OPEC recently cut production.... higher prices.
     
  22. aristobrat macrumors G4

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    #22
    Right, and the weeks in the fall/winter when people drive more (i.e. Thanksgiving and Christmas) always see higher gas prices. It's been that way for the 20 years that I've been driving. :)

    Wasn't there something that happened this year that caused a lot of the people dealing with oil futures to sell? Like oil was removed from some US economic index or something like that.
     
  23. lord patton macrumors 65816

    lord patton

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    #23
    And what about other election years?

    Sure, it may seem fishy, but if Bush and/or Republicans and/or big bad oil companies had that much control, and were willing to use it near elections to manipulate the electorate, wouldn't they have done so in '04, when the big seat was up for grabs? Or in '02? And wouldn't Clinton have helped out Gore in '00?

    I guess to get to the bottom of it, someone would have to look at gas prices in election years for, oh, I don't know, maybe more than one data point?

    Oh wait, someone has.
     

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