August 30, 2006

Will Bush Get The Credit?

Given that George W. Bush has been blamed by Democrats for high gas prices, will they acknowledge that he is equally responsible for this development?

he recent drop in prices at the pump could pick up steam, driving gasoline sharply lower in coming months.

"I'd say $2 to $2.50," said Tom Kloza, chief oil analyst at the Oil Price Information Service. "Once you get past Sept. 15, it's really a downhill game."

Kloza said so far the average cost of a gallon of gas peaked this year at $3.036 on Aug. 10 and has come down largely thanks to diminishing hurricane fears.

"There's just nothing happening in the tropics, and the market had priced in all sorts of calamities," he said.

The motorist organization AAA reported a nationwide average of $2.82 Tuesday, the lowest since April 20.

Online gasoline price survey site Gasbuddy.com shows Wednesday's national average at $2.80.

Another analyst pointed to a 60-cent drop in wholesale and spot prices the past few weeks, noting consumers should see a similar drop in retail prices in the coming few weeks as the decline works its way through the market.

The drop in wholesale and spot prices would translate to retail gasoline prices of around $2.50 to $2.60 a gallon, analysts said.

"The levels that were in place were never justified to begin with," said Mark Gilman, an analyst with The Benchmark Co. "This is a bit of a return to reality."

Gilman said retail gasoline prices of around $2 a gallon by Thanksgiving were certainly possible, although not likely.

Gas prices dropping significantly -- possibly to $2.00 a gallon. What an accomplishment!

And while we are at it, given that he took the blame for last year's hurricane season, I assume that Democrats will also credit him with successfully decreasing the number of storms this year -- and the fact that their impact on the US has been minimal.

And if the president's detractors will not credit him with these developments, will they be honest enough to admit that increasing gas prices and the 2005 hurricane season were both beyond his control as well -- and that they were dishonest in blaming him for either?

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