http://money.cnn.com/2004/11/01/markets/oil/index.htm?cnn=yes

NEW YORK (CNN/Money) - Oil prices traded sharply lower Monday, briefly taking light crude below $50 on speculation that a U.S. election win for Sen. John Kerry could ease the geopolitical friction that helped fuel this year's record-breaking rally.

Energy analysts said a win for Kerry in Tuesday's U.S. election could mean lower crude prices than if President Bush is re-elected. Opinion polls put the two neck and neck.

"Under a Kerry administration we'd likely have a much more interventionist SPR (Strategic Petroleum Reserve) policy," said Jamal Qureshi, market analyst at PFC Energy in Washington, D.C.

"And when you look out a bit further, Bush is more likely to be aggressive in the Middle East, particularly in Iran," he said.

dawnrazor

United Kingdom

November 2003

NOV 01, 2004 03:39 PM

Not that I'm cynical or anything (ahem), but I can't help thinking about who profits from high oil prices as I read this. Couldn't be the oil industry or anything could it?

Nahhhh, silly me. What am I thinking?!!

jholtsnider

I'm lost

February 2004

NOV 01, 2004 05:32 PM

Interestingly enough, most people on Wall Street have said that $50/brl is way too high anyway - it's just speculation all the way, not fundamentals.

SirPsychoSexy

Ridgewood, NJ

January 2004

NOV 01, 2004 05:48 PM

slimjim said:
Interestingly enough, most people on Wall Street have said that $50/brl is way too high anyway - it's just speculation all the way, not fundamentals.

50$ is pretty much the final endpoint of diminishing economic returns for oil as an energy resource. In otherwords they predict on average the US economy can only make about 50$ from the amount of work one barrel can do - meaning at above 50$ it would cost more in the long run to stay in buisness than to shut down and go home tomorrow.

Hopey

Corvallis, OR

January 2004

NOV 01, 2004 07:10 PM

Well, I sure hope prices do go down if he's elected. Stealing iraq's oil hasn't helped, go figure. never trust a mideast war led by a texan.

vampiresoldier

Oakland, CA

March 2004

NOV 01, 2004 07:15 PM

You really think Bush cares if the price of oil is $50 or $100 a barrel? Of course not, he is making money with all his oil bussines and through his oil partners...One more reason to vote Kerry

loudog1

Newport Beach, CA

December 2003

NOV 01, 2004 07:30 PM

But stopping the restocking of the Stragtegic Petroleum Reserve is only a short term solution.

The major problem is that the planet (especially the Chinese, these days) is consuming more oil and we're not producing more oil. Unless we see a major rise in production or a reduction in consumption, oil prices will remain high long term and possibly go even higher.