Jim Gilmore was Exactly Right on Oil Futures!

Please note this post here on B4G "Oil Prices Will Drop Immediately", posted July 9th, 2008. Pretty Bold statement huh? That statement as reported in the press:

“Oil prices will drop immediately if they know we’re going to bring in more oil,” Gilmore said. “We’ve got to drill in ANWR, and we’ve got to do it now.”

Well this happens on July 15th "Bush Says Drill - Oil Drops $9 a barrel?".

and today July 17th, let's check out the price of oil:


Price Change % Change Time

NyMex Crude Future $130.98 -$3.62 - 2.69 13:23

Folks, Governor Gilmore understands the economic theory of supply and demand. These traders are working on contracts 10 years out! It is only elementary that increasing supply, especially one that is only restricted by what used to be the President, but now only Congress; and Governor's like Mark Warner, who veto legislation to allow off-shore drilling in Virginia!

The market is reacting to exactly what Governor Gilmore said would happen, the first hurdle falling to drilling off-shore in the USA. This along with Congressional Democrats mumbling the same, and even weak kneed Liberals such as Mark Warner saying he is now for 'exploring' off shore drilling. We all know however, this is just a deception on his part to try and fool the voters until November, and keep his Sierra Club supporters/donors happy.

I see it as lack of any kind of courage, character, or leadership on Warner's part. He has no political underpinnings, just tell the people what they want to hear. (I will finish eliminating the Car Tax),(I will not raise taxes), (I will explore off-shore drilling).

Now the price of oil can spike again, when the Prime Minister of Iran 'Farts' that he is going to close the straits of Hormuz, but traders again know that is just a threat, and that is why we have a Carrier Battle Group in the Gulf at all times. But Governor Gilmore is exactly right about these contracts. Who wants to get stuck with a contract for $140 for a barrel of crude, when even they know that is inflated over actual market conditions?

It's like buying a stock at $20, and it takes off to $39 in a matter of months... that kind of pricing may not last long, and most traders are likely to cash in if they see something else influencing the value of that stock. The smart ones bail, and hand it to some sucker! That is the markets folks, and commodities are not an easy play.

Listen to the full interview here of Governor Gilmore's explanation of the market and oil pricing.

The bottom line folks, is this is a National security issue to me... if we do not expand domestic production our economy is hostage to foreign energy supplies... yes, go to Norfolk, VA and Thank a soldier, sailor, Marine and Airman. The Strategic Oil Reserve is really for them. Our planes need to fly, our tanks, and vehicles need to roll, and our conventional powered ships need to sail. It's not just about our economy, it's about National Security.

A subject Governor Warner has about as much experience with as his running partner, Hussein Obama.
cross posted to STD.