Just in case there is a human being out there that doesn’t think that the increase of supply or even the perception that we are committed to increase our own supply, the Memory Division of YallPolitics would like to remind the Nation that only a few short weeks since President Bush removed the largely symbolic executive restriction on offshore drilling. The price of oil is down over $20 (trading now at about $121) since the announcement.
The “evil” energy traders are the exact solution to the problem . . . in reverse. If they traded it up based on irrational reasons, it will trade down just as fast (ask any .com stock trader from about 1990-2001). That is the market, as imperfect as it is. Restricting trades in the pits would be tantamount to putting government price controls on the market. It will go down faster if we signal to the market that we as Americans are serious about supplying our own oil. We would have oil at $80/bbl if Congress would pony up and lift the restrictions of the offshore oil ban, which is not symbolic.