Replies

Supply and Demand are certainly driving the market. In the futures market, which is what is usually discussed, it is the expected Supply and Demand. But when looking at absolute dollars, then you have to take into account the value of the dollar as well. You've got it.

Given all that Obama has done to drive up the price of oil, all he has failed to do to bring it down, and all he has done to weaken the dollar and the economy as a whole, how all of those things have effected perception and consequently the market value of both oil futures and the dollar itself, and finally that gas was $1.89/gal when he was sworn in... do you believe that even reversing those policies, returning to a Reagan like approach to the economy, and implementing the other plans Newt has proposed, that the damage done by Obama is simply too great to realistically expect to return to $2.50/gal? Or is your issue not that a return to $2.50 is implausible, but that it's just dishonest for Newt to base his campaign on the premise that he can make good on such an absolute line in the sand?

d implementing the other plans Newt has proposed, that the damage done by Obama is simply too great to realistically expect to return to $2.50/gal?

It is that the price of oil and the associated cost for gasoline is a far bigger market than the US. Much of the world is paying an even higher cost than the land-locked WTI quoted from the NYSE.

Or is your issue not that a return to $2.50 is implausible, but that it's just dishonest for Newt to base his campaign on the premise that he can make good on such an absolute line in the sand?

I understand that control the price of oil is a far larger requirement than just what happens within the US borders in the next 4 years.

Let me try again, I wasn't trying to avoid the questions.

do you believe that even reversing those policies, returning to a Reagan like approach to the economy, and implementing the other plans Newt has proposed, that the damage done by Obama is simply too great to realistically expect to return to $2.50/gal?

I believe price of oil to be capable of dropping such that gasoline would be $2.50 in the near future. I do not believe that can be done solely by changes in the US over 4 years.

Or is your issue not that a return to $2.50 is implausible, but that it's just dishonest for Newt to base his campaign on the premise that he can make good on such an absolute line in the sand?

That is more the case. It is beyond the control of any US president to so greatly influence the world oil market with 4 years to make such a promise.

It could actually be done with price controls and tax payer subsidies, but that is not what he wants, nor any of us should want.