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Did Obama Bring Gas Prices Down?

Larry Leonard

We’re talking about the zillions of gallons he “released” from the national Emergency Reserves. Oil stored by the government for special needs — disasters, war and elections. The amount “released” was the equivalent of two or three days usage in the United States, so unless Americans are stupid, the motivation couldn’t have been political. Or, to put it another way, only economic idiots would believe that “release” was the reason gasoline prices dropped a bit, after the event.

Commodity speculators (rich folks and corporations which have an ongoing need for the stuff) call this the “futures” market. It’s gambling on a roulette wheel that has only two slots for the ball to drop into — up or down.

A three day national supply release is a drop in the bucket. Maximum effect on the price of petroleum would be maybe a dime a barrel for a half an hour on Thursday. This is because oil is a commoddity that is sold on a world, not an American national, scale. 3 zillion gallons would barely make the world oil market needle twitch.

So, since intelligent people know all this, why would he do it?

All we can think of is which oil company bought that oil, what they paid for it and who ended up with the money. 3 zillion gallons from the taxpayer-funded national emergency petroleum reserves would represent pure profit for whoever’s campaign fund or union retirement plan gets the dollars.

(LL)

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