The Crypt reports:
House Republicans issued the boldest claim yet in their three-day energy protest, insinuating on Tuesday morning that their demonstration may in fact have already begun to lower gas prices. “The market is responding to the fact that we are here talking,” said Republican Rep. John Shadegg. “I think the market realizes that this kind of pressure may in fact lead to a change in policy.” Speaking to reporters before entering the House chamber for a third day of speeches calling for votes on domestic oil drilling, GOP members said they had no plans to end the protest, which began when House Democrats adjourned for the summer last Friday. Oil prices did fall $2.18 on Tuesday, however, analysts told the Associated Press that the fall was due expectations the economic downturn in the U.S. will erode consumer demand and the weakening of Tropical Storm Edouard in the Gulf of Mexico.
Actually, I think Shadegg is onto something. OK, recessions lower energy demand and Mark Thoma comments on the Tropical Storm Edouard effect:
Suppose you think that a hurricane might disrupt oil flows in the future. What should you do today? Tropical storm Edouardo gives an example. As the storm approached, people believed there was a chance that oil flows would be disrupted in the future, and the current price began rising as a consequence. If you expect a higher price in the future due to reduced supply or any other reason, you should begin purchasing and storing oil now to take advantage of the higher price in the future, and the increased demand for oil drives today’s price up.
Fortunately for those who wish to purchase gasoline – all that GOP hot air likely pushed back on the winds from Tropical storm Edouardo. And I bet some key economic decision makers went into despair when they heard the stupidity emanating from Congress, which of course increased the likelihood of a deeper recession. Well done Congress. Paul Krugman takes this one step further:
In other news, Republicans credited their speeches for the fact that the sun rose today.