Tuesday, July 15, 2008

Supply and demand still applies, who would of thunk!

Senator Obama said offshore drilling will not lower gas prices "this year, next year, five years from now." But, the mere announcement of the lifting of restrictions led to a drop from $142 per barrel of crude to $138.50 in a single day, this is from a high of near $147 last Friday. Martin Feldstein predicted this very thing.

Perhaps the candidates should be required to take an economics course before they are allowed to take the oath of office!

1 comment:

Cousin Mark said...

There are indications that demand is falling as well, and that is also contributing to the drop in oil price the last few days.

US consumers are starting to conserve now that the oil price has gotten so high.