Was the cause of gas prices dropping due to oil drilling being banned?

It's all based on supply and demand. Right now the supply isn't that high but the demand has dropped severely due to the ecenomic crisis at handWas the cause of gas prices dropping due to oil drilling being banned?
Contrary to what most believe, supply and demand has very little to do with the price of oil. There was no reason whatsoever for it to run up to $145/bbl last July. It was all the oil traders bidding it higher on the futures market and the US$ getting the chit kicked out of it up until around mid August. Since August we have been in a serious commodity deflation due mostly to the gov't intervention in the slide of the US$. Oil is priced in US$ so the weaker the US$ is the more dollars are needed to buy it. The Fed orchestarted a dollar rally so they could continue cutting interest rates without sending the greenback off a cliff. Last July it was right on the verge of collapsing. This rally screwed the speculators because they were short the US$ and long commodities (especially oil). So when this suddenly reversed course the hedge funds were forced to close their short positions meaning they were forced to buy. This sent the US$ vertical. This has been going on for 3 months now and caused just about all commodities to fall off the cliff. But here's the kicker...eventually the hedge funds will be finished liquidating and oil will skyrocket. This is a certainty because of all the bailout money that the gov't is throwing into the monetary system....it is HIGHLY inflationary. The low bond yields will reverse and spike higher and the US$ will plummet sending all commodities even higher than they were last July. The question is when will this happen not if. From what I'm reading the chit will hit the fan early in '09...most likely by Feb. or March but we could see signs of this reversal any day. Enjoy cheap gas now...and then buy the oil futures so you can afford to fill up your tank next summer.


Place your bets now.


got gold?;-)Was the cause of gas prices dropping due to oil drilling being banned?
That would most likely have the opposite effect and drive prices up. I believe it is actually caused by the drop in investments in the oil industry. I thin much of the oil price was driven by speculators and stock traders.
I think the speculators who were manipulating markets have lost their shirts.