Posted on 09/05/2006 12:21:04 PM PDT by freemarket_kenshepherd
Maybe it could be called “The Conspiracy Hour with Jack Cafferty.” On the September 2 “In the Money,” the program’s host recycled his theory that gas prices are dropping because of scheming oil companies.
“You know, if you were a real cynic, you could also wonder if the oil companies might not be pulling the price of gas down to help the Republicans get re-elected in the midterm elections a couple of months away,” Cafferty suggested just a few days earlier on the August 30 “Situation Room.”
“In the Money” contributor Jennifer Westhoven reminded Cafferty of his August 30 comments and suggested he rehash his “cynicism about the election” for the “In the Money” audience.
“Certainly the thought had crossed my mind. I mean, the oil companies have a vested interest in seeing that the Republicans remain in control of the federal government,” Cafferty answered Westhoven, before adding facetiously, “They wouldn't pull prices down before the mid-terms now, would they?” he added over laughter from his fellow panelists.
Later on, Cafferty returned to actual supply and demand considerations driving the price, which prompted contributor and Fortune magazine editor Andy Serwer to offer a gloomy prediction. Suggesting the price drop was only a “blip,” Serwer warned that political crises stemming from Iran, Venezuela, or Nigeria “could erupt or turn bad or anything at any point” or that the hurricane season might take a turn for the worse.
At no point in their look at gas prices did the “In the Money” crew seek the opinion of oil analysts, although Serwer confidently pointed to “the folks at the Chrysler Corporation” who “seem to be suggesting” gas prices will “stay up for a while.” Serwer also scoffed at others who “think they’re going back to $2,” adding, “I’m not one of them.”
While the “American Morning” business contributor didn’t name names on the $2 prediction, he appears to be misquoting oil experts.
“We'll be closer to $2 than $3 come Thanksgiving,” reporter James Healey quoted the Oil Price Information Service’s (OPIS) Fred Rozell in the August 30 paper. That would suggest gas price averaging below $2.50, not necessarily at or near the $2-a-gallon mark.
A September 5 article by Associated Press reporter Brad Foss similarly noted that “most analysts” believe achieving $2-a-gallon prices “is unlikely and would entail a major slowdown in the economy, if not a downright recession” but that it’s more likely “that retail gasoline prices will slide to about $2.50 a gallon by winter – and then head higher again early next year.” The average per gallon price for gasoline has dropped 30 cents in the past month, to $2.73.
The Business & Media Institute has varying coverage of price drops by other media outlets. On the August 31 “Early Show,” CBS’s Harry Smith remarked that the media months ago were “screaming with our hair on fire” about then-rising gas prices while a day earlier, NBC’s Kevin Tibbles shrugged off the downward trend, focusing his August 30 report on Chrysler’s “wake-up” call from CEO Tom LaSorda who is planning for gas prices in the “$3-to$4-a-gallon” range.
The reason why oil prices are falling is very simple: The high profits that oil companies make are encouraging investment in the oil industry, increasing supply, and forcing down the price.
If the Dems had it their way, there would be no profits in the oil industry, and there would be no increased oil supply.
And by the way, you don't get that kind of a result from a monopolistic industry. It only happens in a competitive industry, so the fact that oil prices are softening is proof of the success of the GOP policy of letting the market work.
slow-dimwitted vs the Rhodes scholar
What an intriguing reply to my Dem family members at the Thanksgiving table when castigating Bush about the gas conspiracy!!!
You are a genius!!
"Any opinions from people who know more than I?"
I trade oil futures and you are correct in the assumption that prices decline faster than they rally. This is true for all freely traded markets.
In the case of petroleum products they show a definite seasonal pattern. In the summer, when people vacation the demand for gasoline increases and so does the price. After Labor Day driving decreases rapidly and so do prices.
This seasonal has been going on for decades. It's just amazing that the MSM has never figured this out!
While that's probably true, I doubt they could fill what there are of them anyway... LOL
That's true, and I don't, will I guess I do have a pick-axe to grind.
Jack Cafferty is one of the biggest Clymers on television....He probably listens to Alex Jones at night.
Gas prices always go up for the summer vacation season. It's called supply and demand.
Yes, I did see Rove in the trading pit screaming "Sell!", "Sell."
My memo said 99.9 per
I disagree;
$2.50 is the break even pt
culture of corruption and gas prices have been taken off the table.
Hello,
$2.38 here in (parts of) SW St. Louis County....
Glad to be here, MOgirl
Watch in the spring when refineries change from winter gas to summer.
Thay take this low demand time to do alitle maintainence.
Prices always go up,dems claim 'gouging" and have hearings.
All predicitable.
Well I guess the best test is to just watch the prices leading up to Election Day, then look at the prices again at years' end.
If they sink like a stone........then go back up........oh wait never mind, "free markets". Yeah that's it.
(adjusts his tin foil hat proudly)
Gas fell about a nickel on the futures market today.
DAMN YOU KARL ROVE!
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