Why has the cost of oil dropped over 60% toward the end of the Bush administration since their record highs?
...during the Bush administration?
rukiddin... (below) So you actually believe that "demand" has dropped my more than 60% over the past two months?
- Anonymous1 decade agoFavorite Answer
Investors are speculating on a much different future than what they originally had in mind. Not only has economies worldwide gone south, but we didn't elect the presidential candidate that wanted to perpetuate our dependence on petroleum.
- MephistoLv 51 decade ago
The conglamorates have reached their reserve threshold and so decided to ease up some before Obama sets in an inquiry is started.
Supply, Demand - a thing of the past.
Speculation: Legal term for price gauging
Patriotism: War Profiteering
Liberation: Forced Dependence
Martial Law: Scare tactic
Socialism: Terrorist at work
Republican: Wealth for a Few
Democrat: Spread the Wealth for the few.Source(s): on and on and on and on and on and on - what - snap..
- Bill in KansasLv 61 decade ago
Oil is a traded commodity
Since the markets are down, so is oil.
The speculators drove the price of oil up, not the Bush administration
- smsmith500Lv 71 decade ago
Its called a fall in US demand for oil and yes it does account for the fall. That with the lifting of restrictions on domestic oil production. Of course I am sure that the Obama administration will remedy the lower prices of gas with their "windfall profits" tax. Just another tax for the poor and middle class.
Of course you would rather believe that the President has a "secret" agreement with the oil companies instead of believing in a basic rule of economics.
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- Anonymous1 decade ago
I don't know of a massively world traded commodity that is so unstable in price....
with that much volume, there is usually some stability...
clearly, more is at work here than just simple supply and demand...as I know of no one that has cut driving to the degree to even start to explain a 60 percent drop...
- BeardogLv 71 decade ago
Demand was never that high. July was the absolute top of a bubble, and now it's burst. Two years ago the price of oil was about what it is now. Do you think Demand doubled for a year and then halved?
- Phil MLv 71 decade ago
The entire world is heading towards a recession, which means global demand is down...hence the plummeting price.
It did this during 1998-1999 too if you remember...the world was going through a recession (it was a wave starting in asia) and it dropped prices for us here and everywhere else. We got bit by the recession in 2001...
Its based on speculation, not on real numbers. Do you really think demand increased by 400% in three years? its based on speculation of supply vs demand.
- BullseyeLv 71 decade ago
It's a conspiracy by Bush--- he is trying to help out Obama.
Really-------- the price of OIL has dropped over 50% since it's high of almost $150 per barrel.
- madd texanLv 61 decade ago
The cost of most commodities have plummeted since the economy has tanked. Expect oil prices to go up again in the near future. OPEC has decided to cut production by 900,000 barrels per day. China just announced it's "economic stimulus" package, and expect it's oil consumption to go up again.
- Anna PLv 71 decade ago
- dramatically reduced demand--oil is not just for cars
- China has stopped building an oil reserve
- refineries have caught up
- no more speculation.
Stagflation is INFLATION. Right now oil is in deflation (thank God).