Quote:
Originally posted by XXXManager
Why do you all think oil prices will drop so much?
Even more - why do you all think that dropping prices will help the US so much?
tell me what price do you think an Oil barrle will drop to? and how exactly will it help US.
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OPEC attempts to control oil prices, and everyone assumes they do. In reality they control about 40% of the world's oil output and their impact is lessening. Their abilty to control their own member's output is suspect at present, much less trying to control a U.S.-centric government.
As to how much oil prices would drop... who knows. Safe to say Washington's put some thought into it however, and safe to say a drop would occur. Dubya's re-election could hinge on the state of the economy.
A drop in the cost of oil would be hugely beneficial. The US imports 11 million barrels of oil a day. As it so happens, every dollar drop in the cost of a barrel of oil reduces our trade deficit about 1%. Take a $30/barrel at current rates, drop it down to $20 it was in the early nineties and the US airline problems disappear overnight, $40,000,000,000 less funds flow out of the US annually, etc., etc. The economic impacts would be staggering.