Will the price of oil drop after Obama is president?

He want’s to end the war in Iraq and negotiate with Iran. Will this be helpful in reducing the cost of oil?

Despite all the recent talk of soaring prices at the pump, political and economic pundits rarely mention the impact of war and political instability in the Middle East on the skyrocketing price of oil. There is strong evidence, however, that the heightened price of energy is a direct consequence of the destabilizing wars and geopolitical insecurity in the region. These include not only the raging wars in Iraq and Afghanistan, but also the threat of a looming war against Iran. The record of soaring oil prices shows that anytime there is a renewed U.S. military threat against Iran, fuel prices move up several notches.

Not long ago the price of oil was about a quarter of what it is today. But soon after the invasions of Afghanistan and Iraq the price of oil began to escalate in tandem with the escalation of war and political turbulence in the Middle East. The fact that the rise in the price of oil has followed the heightened insecurity in oil markets is neither accidental nor a simple correlation; it represents a causality that runs from the heightened insecurity in oil markets to the inflated price of energy.

The war also contributes to the escalation of fuel cost in indirect ways; for example, by plunging the U.S. ever deeper into debt and depreciating the dollar. As oil is priced largely in U.S. dollars, oil exporting countries ask for more dollars per barrel of oil as the dollar loses value.

Not only are the raging wars in the Middle East responsible for energy price inflation, they are also responsible for price inflation of many other commodities, especially grains and other foodstuff, whose production and transportation depend on fuel.

According to the World Bank, food prices have more than doubled over the past three years. The price of rice, the staple for billions of Asians, is up 147% over the past year alone. The mounting food prices have caused hunger and deadly violence in many countries, including Haiti, Egypt, Thailand, Indonesia, Senegal, and Malaysia.

This shows that the disastrous consequences of U.S. wars of choice go beyond Iraq, Afghanistan, and the United States. The skyrocketing costs of fuel and food tend to plunge many of the world economies into a 1970s-style stagflation (a combination of stagnation and inflation) that threatens many lives and/or livelihoods around the globe.

16 Responses to “Will the price of oil drop after Obama is president?”

  1. Obama Is Black KKK Says:

    THIS IS THE DOPIEST THING I’VE EVER READ

    Oil prices are controlled in the futures pits. Obama would have as much control over that as he would the price of Microsoft’s stock.

    The only way to drop oil prices is to up the margin requirements on speculators. If that were done, the price would drop overnight.

  2. Gloria H Says:

    he will never make into office

  3. sitonmylittlebrother Says:

    i dont know

  4. JohnY Says:

    I’d say YES. Actually anybody who can help us to get rid of Oil Price Hike could be an American hero.
    Check this out:

    Dollar can get its strength back and Oil price will drop sharply if:
    1- Iraq war ends and troops come back home, which Obama has already promised and McCain wants it continued for another 100 years.
    2- Bush gets out of the White House.
    3- McCain can not succeed to win the election.

    ***********************************
    Bush = Pro War and Pro Rich People’s Profit
    Bush = Pro Oil Price Increase and Pro Halliburton
    Bush’s Rating is = 30%
    McCain = Bush

  5. joearnold00 Says:

    It doesn’t matter who becomes President. The price of gas may decrease for awhile but it will never be considered low again.

    You can put into place as many different policies as you want. Supply and Demand dictate the price more than what countries we are negotiating with.

  6. Charles C Says:

    Absolutely not. He will push Congress to increase taxes on oil companies and oil. These increases must be passed on to the consumer. Some of his stated position on the Middle East will no doubt make some of those nations nervous. What thier reactions will be is hard to tell, but the normal reaction would be for them to hold or reduce production.
    I doubt he will win however.

  7. the_two Says:

    Ron Paul

    http://www.youtube.com/watch?v=G7d_e9lrcZ8

  8. Fossil Says:

    In the unlikely event that he were elected, he has always advocated higher fuel taxes just like all of the other liberal democrats including Hillary. If he were to follow his usual pattern and raise fuel taxes, how do think that could possibly lower the cost at the pump?

    There is nothing that would lead me to believe that whoever wins in November will have any immediate influence on oil prices other than either Obama or Hillary making them worse by taxation.

  9. P. T Says:

    If he becomes President No,
    We are hurting ourselves on oil, gas and food. Seems you would like to blame war for it all but that’s not it.
    We want drill for oil in our own backyard. In Alaska no reason not to drill, off of our coast and in many states.
    China is drilling off the coast of Florida soon we can’t because we might hurt the environment. Does China care, I don’t think so.
    Food, using corn to make alternative fuel is the most irresponsible thing going today and subsidizing the farmers that grow it.

    Food for thought.

    I noticed a comment that oil prices are controled in the futures pit. Not exactly, think of this as one of the way and this as one of the others. The is a nozzle with a big handle on it, in the Middle East if you turn it one way more oil comes out turn it the other way and less comes out. In the latter the price of oil goes up. Call it the OPEC nozzle

  10. Steve Says:

    Yes, it will defiantly drop, after half the world is destroyed due to his lack of experience insuring the ensuing destruction of our nation, there will be plenty of gas to go around, so the prices will drop.

  11. obama campaign worker Says:

    the president cant tell anyone to lower the price of oil.

    he has some long therm plans that by the time they take any effect gas will be 6 bucks a gallon.

    What is happening right now is called market manipulation, Something hillary has said for the last 12 months that if she made it into office she would start an investigation into the market manipulation.
    the worlds (according to economists) oil consumption has only raised .003% in the last 10 years so there is no need for the oil to do what it has done.

    obamas long term plans are the same as hillarys, only hilary is the one candidate that wants to open an inverstigation IMMEDIATELY as to why we are being gouged when suplly and demand has changed except by .003%

    Anyone watch tv last week where bush was in saudi and they showed him talking to the oil barrens? he asked them to up their production. They looked at him and said, "WHy, we have plenty of reserves and demand hasnt raised so why should we build more reserves that are being used now"

    See why hillary wants to investigate this? oil companies have made the most profit in the last few years than in any past time.
    its called market manipulation and something obama seems to NOT want to do.
    Of course, he has accepted all that pac money and the 230 thousand in donation from exxon. so it would stand to reason he doesnt want to shake their boat.

  12. Esurk Says:

    OY! Here we go again! Newsboy, the President of the Untied States has very little to do with the cost of oil, wars or not. Supply and demand dictate the cost of oil worldwide. The "emerging economies" of China and India over the past several years have more to do with it than ANYTHING else.

    And you stated, "the raging wars" in Iraq and Afghanistan…They’re not raging wars, dude. Our troops have scuffles here and there with those who want to fight. That’s not raging, World Wars One and Two were raging. The U.S. Civil War was raging. And you are raging.

  13. baserunner316 Says:

    I’d like him to do it. Hillary would never be taken seriously by the middle east and would fail as usual and blame it on being a woman. The only reason we’re in this war now is because Dick Cheney has been scheming to take over the middle east for years.Dickwad gets to bail out of Vietnam and send everyone else’s kids to die for his wallet.Ran with Bush on a christian values platform too. Way to go bible belt.

  14. Troll Hunter Too Says:

    Not NO … H E L L .. N O !!!

    HE WILL TAX US INTO OBLIVION !!!!
    .
    It’s called the Global Poverty Act (S.2433), and it is being sponsored by none other than Senator Barack Obama.
    .
    IF … OBAMA was a WHITE man WITH the SAME LACK of Qualifications, HE would have been – LAUGHED – out of the Nomination process in the BEGINNING !!!!
    .
    NEITHER can WIN the outright nomination !!

    So … It will go the the Convention, with the Super Delegates making the FINAL decision for YOU !!!

    The Elite Democrats CAN AND WILL select the person that they FEEL has the BEST chance to REPRESENT the Democratic Party!!

    With ALL of the scandal surrounding OBAMA …

    He is NOT going to be their CHOICE !!!
    .

    Obama did NOT even finish his FIRST TERM in office !!!

    I am for OUR America AND OUR Children’s Future !!!!

    That is WHY … WE … NEED to make sure that EVERY American KNOWS about Senate Bill S.2433

    OBAMA wants to END WORLD POVERTY on YOUR NICKEL AND SURRENDER THE United States to THE United Nations.

    Please, SEARCH the phrase above !!!! … OR the Actual Senate Bill Number – S.2433 !!!
    .

    CHANGE is ALL that you will get back from the Socialist/Communist/Liberal Democrats, when they TAKE your hard earned paycheck from you to give it to able bodied people, "FEEDERS", who do NOT want to get off of their butts and actually get a job !! Our wonderful government hand-out programs !!

    Please, TRY to HOPE in one hand and SPIT in the other hand!

    Which one is filling up the fastest ??
    .
    We need to make sure that the person that represents AMERICA is PRO-AMERICA !!!

    WE NEED to make sure that EVERY man, woman, and child, KNOW how ANTI-AMERICAN Obama and his Reverend(S) ARE !!!

    Would a CONTINUAL 20 years of "second hand smoke" have a negative affect on the other people in the area ??

    Would a CONTINUAL 20 years of "Anti-American Preachings" have a negative affect on the other people in the area ??

    John F. Kennedy, a Democrat, was sworn in as the 35th President of THE United States of America, at noon on January 20, 1961. In his inaugural address he spoke of the NEED for ALL Americans to be ACTIVE CITIZENS, famously saying, "Ask not what your country can do for you; ask what you can do for your country."

    Please NOTICE that it said DEMOCRAT – NOT Socialist and / or Communist Democrat !!

    It means this country is only as strong as the people in it. It means get off your a$$ and do something!!!
    .
    The Democratic Elite make the rules and then they change them for their convenience !!

    The Elite Democrats feel like THEY know better than YOU who would be the best person to run the country !!!

    By the People and For the People !!!
    .
    He wants to COMMITT America to PAY $845 Million to the Global Poverty Act !!!

    OBAMA wants to END WORLD POVERTY on YOUR NICKEL AND SURRENDER THE United States to THE United Nations.
    .

  15. politicoswizzlestick Says:

    I don’t think there is any reason to doubt bush will be handing off a country in the worst recession since the great depression. We have skrocketing fuel and food prices. We have a crumbling infastructure. Our public schools suck. The baby boomers are about to retire, driving up medicaid and medicare to huge numbers. And our country is mired in two occupations that have created the largest debt in US History.

    Things will suck no matter who is elected.

    Obama plans to regulate hedge funds. That will help as much as anything else.

    I think he will start pull us out of Iraq and we will have a 1-2 month war (not surge) in afganistan (and possibly pakistan) against Al Quida. Then we will largely get out of the region over costs. I think he realizes our army is not designed to be an occupation force. I think the whole process will take 2-3 years and will end just as the baby boomers retire. At that point our deficiet spending will thankfully end.

    I am worried that he might spend too much up front on needed but postponable liberal projects that might further hurt the economy, but I think this scenario is what is needed and so I am content to bear 2 tough years.

    ( I think McCain will just continue the bush polices, and those will hurt far more.)

  16. Notnaive Says:

    No the price of oil will not drop no matter who is elected president.