While the Bush administration would like to take credit, it can't. The president of the United States may be a very powerful dude, but the arcane machinations of the global oil market are beyond even his long reach.The reason that American motorists are paying nearly a dollar less at the pump than they were 10 weeks ago is banal in the extreme:
It's because of hedge fund investors who were betting the ranch that there would be a repeat of the devastating 2005 hurricane season that sent prices -- and oil company profits -- soaring.Not to worry. Prices will be going back up sooner or later, and one sure sign of that is OPEC ministers meeting to consider production cuts.
These investors had poured gadzillions of dollars into long-term positions in oil, gasoline, natural gas and other energy commodities and took a bath in August when the 2006 hurricane season forecast was radically downgraded.
More here and here.