You Can Thank France and Greece For Lower Oil Prices

This morning, West Texas Intermediate (WTI) oil was trading at $93/barrel.  Just a few weeks ago it was trading at over $107 per barrel and gasoline prices we're clearly heading above $4/gallon; nationwide.  That's nearly a 14% drop in price. So, what happened?

Well, you can thank the economic mess in Europe for the lower oil prices.  As Europe moves into deeper recessions and as countries like France and Greece seem to be rejecting austerity to get debt under control, the value of the Euro dollar has fallen; actually causing the American dollar to rise in value on a relative basis. As a consequence, the stronger U.S. dollar has caused oil prices to fall..  It's just that simple. And, it basically proves that Obama's weak dollar policy through high spending and debt is at the core of out current high oil and gasoline prices.  All along, the falling Euro has somewhat kept oil prices in check. I guarantee you that if Europe had been in good economic health over the last 3 years, we would have easily seen gasoline prices above $5  a gallon in the last two years.

Those same, so-called speculators that supposedly drove prices higher as a response to Middle East events are now responding to other changing world events and, as a consequence, are selling off their oil holdings; thus driving oil and gasoline prices down.  Maybe Obama should demand an investigation because oil prices are obviously being manipulated lower. .