Since April Obama cuts oil by 21%, boosted GDP $78.4 Billion

[dmcowen674]

6-25-2012

http://www.forbes.com/sites/peterco...a-cut-oil-prices-21-boosted-gdp-78-4-billion/

Since April President Obama Cut Oil Prices 21%, Boosted GDP $78.4 Billion


In April, President Obama’s $52 million plan to increase the margin requirements and otherwise tighten the screws on oil speculators — who borrow huge sums to bet on the direction of oil without taking delivery

• Increase by a factor of six Commodity Futures Trading Commission (CFTC) surveillance and enforcement staff “to better deter oil market manipulation,”
• Boost 10-fold to $10 million the civil and criminal penalties against “firms that engage in market manipulation,”
• Give the CFTC authority to increase the trader margins — the amount of their own capital that traders must set aside for each bet. The administration officials said such authority “could help limit disruptions in energy markets,” according to the Post.

So just how much has President Obama stimulated the economy through his April crackdown on oil speculators?



Gas was $4.05 a gallon for mid-grade back then and this week the price had fallen to $3.49.


That 56 cents a gallon decline would amount to a savings of about $582 a year — assuming 20 gallon tank once a week. But if the AP is right, that same 56 cent a gallon drop would add $78.4 billion to U.S. GDP.


That’s not much for a $15 trillion economy, but it represents a 1,508% return on President Obama’s $52 million investment in two months.

 

[dmcowen674]

There certainly will be the usual naysayers to proclaim Obama had nothing to do with the drop.

 

[cubby1223]

There certainly will be the usual naysayers to proclaim Obama had nothing to do with the drop.

That's your grand commentary?

Why bother creating the thread?

All you are doing is looking for another flame war.

I'll bite.

Does this mean Bush gets credit for the gasoline prices dropping by a huge percentage back in 2008?


In reality, I'd like to see what the real causes of this price drop are without any politics involved.

 

[JS80]

Lol it must have nothing to do with the euro crisis and tanking demand and the highest oil supply in the last two decades.

 

[tweaker2]

I've yet to see or hear how the implimentation of these policies raised the price of gas or negatively impacted the economy in any way, shape or form. So we have better regulating of the speculators and not a peep from the doom and gloom folks screaming how these policies that "overregulate" the oil industry caused the petrol businesses to disasterously implode. Seems like a win-win to me......so far.

 

[dmcowen674]

Originally Posted by dmcowen674
There certainly will be the usual naysayers to proclaim Obama had nothing to do with the drop.

That's your grand commentary?

Why bother creating the thread?

All you are doing is looking for another flame war.

I'll bite.

Does this mean Bush gets credit for the gasoline prices dropping by a huge percentage back in 2008?

In reality, I'd like to see what the real causes of this price drop are without any politics involved.

Did Bush go after the Speculators like Obama did?

I'm sure that would be a No.

 

[Matt1970]

No, Bush did something that actually worked, he lifted some restrictions on drilling on Federal land.

 

[tweaker2]

No, Bush did something that actually worked, he lifted some restrictions on drilling on Federal land.

http://www.billoreilly.com/blog?action=viewBlog&blogID=-467613446769598809

Along with quite a few others. Just say'in.

 

[EagleKeeper]

Lack of sabre rattling in Iran also has an impact

 

[Nintendesert]

Nice to see President Bush improving his economy.

 

[Genx87]

This is so amusing yet pathetic at the same time. Europe in economic crisis, world economic outlook looks bleak, expected demand is down. But Dave somehow attributes this to the reason why oil has dropped in price.

 

[Doc Savage Fan]

There...it's finally settled...Obama is an awesome President! Thanks Dave!

 

[Texashiker]

There certainly will be the usual naysayers to proclaim Obama had nothing to do with the drop.

Let me guess, obama was helping build the oil wells, and developing new technology that helped drive down the price of gas?

I guess obama helped solve with the oil crunch on the late 1970s?

 

[Londo_Jowo]

Why did the OP choose to leave these important parts from the same article? So was it the Obama or the market just being the market?

So what’s happened since April? Oil ended the month at $106 and as of June 22, it had lost 21% of its value — sitting at $84. I guess I under-estimated the impact of the CME’s boost in margin requirements for oil speculators.

But there are other factors that could have affected the price of oil. For example, the dollar has strengthened compared to the Euro since the end of April — rising 6% from $1.33/Euro to $1.25/Euro – and since oil is traded in dollars, the stronger the dollar, the more oil it can buy.

It’s entirely possible that supply and demand have something to do with this as well. MarketWatch claims that “traders are more concerned about plentiful supplies and deteriorating demand expectations.” And on June 20, the EIA reported a 2.9 million barrel supply increase in the week ended June 15 while Platts analysts expected to see a decline of 600,000 barrels for the week.

 

[Doc Savage Fan]

There's been a huge effort underway by US industry the past year to switch from #2 and #6 oil to natural gas. Market driven economics ftw!

 

[Jaskalas]

Obama is hereby blamed for oil falling, which is due to the economy going down... Obama sank the economy?

 

[Texashiker]

Whats next?

Will obama get credit for building the internet, building the interstate highway system, ending the cold war, designing the space shuttle,,,?

 

[WackyDan]

Let me guess, obama was helping build the oil wells, and developing new technology that helped drive down the price of gas?

I guess obama helped solve with the oil crunch on the late 1970s?

Not to mention that oil is global and anything Obama did doesn't impact speculators outside the USA....

SNOOZE.

 

[thraashman]

Obama is hereby blamed for oil falling, which is due to the economy going down... Obama sank the economy?

The economy hasn't gone down though. It's still growing, though growth has slowed a bit. I do find conservatives blaming of Obama for being unable to fix a massive economic crash instantly to be funny. That's like if a man was shot 10 times you get mad at the doctor who saved his life because the man isn't back at work 2 days later, the level of stupidity required to think that way is astounding.

Whats next?

Will obama get credit for building the internet, building the interstate highway system, ending the cold war, designing the space shuttle,,,?

Well conservatives love to post how gas was $1.78 when Obama took office and blame him for high gas prices while ignoring that it was only so low because the stock market had just undergone a massive crash and that even at its highest under Obama it still never reached the high point it did under Bush. This is just the other side of that coin. Except in this case some of Obama's policies may have actually been partially responsible for the easing back of prices.

 

[cybrsage]

It is the Bush economy, right?

Wait, it is only the Bush economy when things are bad, but the Obama economy when things are good. My bad, I keep forgetting.

 

[Texashiker]

Well conservatives love to post how gas was $1.78 when Obama took office and blame him for high gas prices while ignoring that it was only so low because the stock market had just undergone a massive crash and that even at its highest under Obama it still never reached the high point it did under Bush.

Obama being anti-oil does not help.

 

[FerrelGeek]

Whats next?

Will obama get credit for building the internet, building the interstate highway system, ending the cold war, designing the space shuttle,,,?

Get your history straight. Gore invented the internet!

 

[zephyrprime]

The primary reason for oil prices dropping is the crisis in europe raising the spectre of deflation yet again.

 

[FerrelGeek]

Why did the OP choose to leave these important parts from the same article? So was it the Obama or the market just being the market?

Because the OP is a troll.

 

[Jaskalas]

The economy hasn't gone down though.

I did not specify the US economy, which should take quite a beating from Europe anyway.