Oil Prices May Fall, Just In Time For McCain
Of course not -- with their sucking up to the enviros and love of regulation and Big Gov, they haven't a clue what to do about oil prices.
Fortunately the free market knows exactly what to do -- and it looks likely a correct will come in time to keep McCain from being saddled with a deepening recession:
The roaring oil boom of the last few months may be on its last legs as economic growth slows hard across the world and a clutch new refineries come into operation, Lehman Brothers has warned in a hard-hitting report.The [UK] Telegraph report goes on to blame the recent price run-up on the same folks that brought us the pre-crash real estate price run-up, speculators.
“Supply is outpacing demand growth,” said Michael Waldron, the US bank’s oil strategist.
“Inventories have been building since the beginning of the year. We have pretty significant projects starting soon in Saudi Arabia, and large off-shore fields in Nigeria,” he said.
The Saudi Khursaniya field has just opened with 500,000 barrels a day (b/d) of production, and the new Khurais field will start next year with a further 1.2m b/d.
Lehman Brothers said the price of oil had been pushed to inflated levels by a $40bn inflow into commodity index funds this year, much of it coming from Mid-East sovereign wealth funds.Once again, recent media reports on oil prices have sounded like prices will continue to go up and up and up with little hope for relief. This is to be expected since most MSM reporters have bought into the false Greenie belief that all resources have been exploited to the breaking point.
The petro-investors may have second thoughts about gaining “double exposure” to commodity prices.
“Financial flows have been the marginal driver of prices since the onset of the credit crunch. Investors are using oil as a hedge against inflation and a falling dollar,” said Mr Widmer.
If the Lehman projection is correct (they didn't call the housing crash right, so don't file their prediction in your "guaranteed" file), it will lead to lower prices quickly enough, which in turn will lead to happier consumers, which will be good news for the GOP, come November.