Price of Oil Related to Supply and Demand?

The latest death toll figures from Hurricane Katrina can be seen on this website here. The famous Russian neo-Nazi video is on this blog here.

We have been over this and over this on this blog, but I thought I would toss this out.

The price of oil has collapsed recently from over $120/barrel to around $80/barrel. Wow!

Did that have anything to do with supply and demand? Are you kidding? Of course not. What happened? Speculative money poured out of commodities such as oil and back into ultra-safe investments like money markets and bonds. Supply didn't go up by one barrel. Demand hardly decreased at all. Supply and demand hardly has jack to do with oil and gas prices anymore.

It's important to note this because McPalin's whole agenda is Drill drill drill! Why? It's all based on the appealing lie that oil and gas prices anymore have the remotest relationship to either supply or demand. Since the prices of most other items are supply-demand related, and your average American idiocrat has figured that out., this argument has a logical intellectual appeal.

If we drill more oil, oil and gas prices will go down!

Says who? Says no one with any brains.

McCain tonite just said that if we start offshore drilling all up and down the coast of the US, this will lower oil prices, because "it will show 'them' that we are able to produce our own oil." I'm not sure what he means, but I assume he recognizes that all world oil prices are set on two oil bourses, one in the US and one in London. I guess that is the "them" he is referring to.

This implies that oil speculators see the slightest increase in oil supplies anywhere on Earth and start bidding down oil prices on the bourses the next morning.

GMAB!

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