For the most part yesterday the price of oil remained stable, around $145 per barrel. Late last night after most House members went home debates were held for 2 hours on the House floor concerning offshore drilling and drilling in ANWR. The Democrats were stuck on speculators manipulating the oil market and they were right. Republicans were advancing the idea of offshore drilling and drilling in ANWR and they were right. Yesterday President Bush lifted the Executive Moratorium ban on offshore drilling and he was right.
The Congressmen in charge of the debates almost reached a consensus when the Republicans was asked if the Democrats agreed to lift the moratorium would the Republicans agree that any oil produced would be restricted to America. The Republican Congressman assured the Democrats the Republicans would not object to such a restriction. The oil coming out of Alaska now is already restricted to America.
As the markets opened today the oil futures remained flat and the Dow stocks plummeted below 11000 until after the President spoke. As President Bush was speaking telling Americans high gas and oil prices were in the hands of Congress and again called for Congress to act, the Dow started back up and oil dropped by $8 to $137. What happened?
To me it is clear. If you watch the market you will see a direct correlation between the stock market and the oil futures market. When the price of oil goes up the price of stocks on the Dow drops. Speculators became nervous, fearing the Republicans and Democrats may come together with a bill that would; a) regulate the market, b) find the speculators that are artificially manipulating the market c) lift the Congressional Moratorium on drilling. Along with President Bush explaining the ball was in the court of the Democratic Controlled Congress and the idea that Congress may agree to act forced some speculators to get out. When the speculators get out of oil, the price drops and the Dow gains.
So now the only obstacle between lower oil prices, higher Dow prices and relief for the American consumer is Nancy Pelosi and Harry Reid. It is up to these two to put America's interest above politics. The question is go they care more about politics or the present state of America.