One Small Step for The President --- $6.00 drop for Oil!!

Economist Larry Kudlow wrote yesterday.

"In a dramatic move yesterday President Bush removed the executive-branch moratorium on offshore drilling. Today, at a news conference, Bush repeated his new position, and slammed the Democratic Congress for not removing the congressional moratorium on the Outer Continental Shelf and elsewhere. Crude-oil futures for August delivery plunged $9.26, or 6.3 percent, almost immediately as Bush was speaking, bringing the barrel price down to $136. Now isn’t this interesting? Democrats keep saying that it will take 10 years or longer to produce oil from the offshore areas. And they say that oil prices won’t decline for at least that long. And they, along with Obama and McCain, bash so-called oil speculators.

And today we had a real-world example as to why they are wrong. All of them. Reid, Pelosi, Obama, McCain — all of them."

"Yes Virginia, there is a way we can influence the price of oil, in the SHORT TERM." Oil prices are controlled by speculators who try and predict the FUTURE prices of a barrel. In the wake of increased domestic production (to the tune of millions of barrels a day) and increases in other forms of energy, nuclear, coal, and eventually alternative energy; speculators and OPEC, who understand supply and demand economics will reduce the price of oil NOW.

OPEC understands that the best method to reduce global competition in the oil supply is the political limitation America puts on itself. As soon as it appears Americans gain the political will to drill, OPEC will increase supply, drop the price, and take away the immediate economic incentive felt by the previously anti-drilling Americans.
Nice job Bush, your not so lame duck after all.

TAHL