Analysts: Kerry Presidency Will Mean Cheaper Oil Prices

[Nbadan]

As if any reasonable-minded person needs another reason to vote Kerry tommarrow...

By Richard Valdmanis

NEW YORK (Reuters) - Oil prices may cost as much as 10 percent less next year if U.S. Democratic challenger John Kerry (news - web sites) defeats President Bush (news - web sites) in Tuesday's election, some energy analysts said on Monday.

Kerry is seen as more likely to use the U.S. Strategic Petroleum Reserve (SPR) to cool prices and is expected to have a less aggressive policy in the Middle East, lowering the risk of supply disruptions from the energy-rich region.

"Under a Kerry administration we'd likely have a much more interventionist SPR policy," said Jamal Qureshi, market analyst at PFC Energy in Washington. "And when you look out a bit further, Bush is more likely to be aggressive in the Middle East, particularly in Iran," he added.

Oil prices have jumped to record highs this year over $55 a barrel on concerns over tight supplies, unreliable shipments from war-torn Iraq (news - web sites) and growing demand from countries like China and India.

On Monday, a day ahead of the election, oil prices recoiled more than two dollars to dip below $50.

PFC predicts an average oil price of $43 a barrel in 2005 if Kerry wins, compared with $48 if Bush is reelected .

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This weeks down-turn in prices could be a sign that the oil market expects Kerry to win tommarrow night and ease Middle-East Policy that has led to a premium of at least $10 per gallon since 911.

[Nbadan]

LONDON (Reuters) - Oil prices fell sharply on Monday on speculation that a U.S. election win for Senator John Kerry could ease the geopolitical friction that has helped fuel this year's record-breaking rally.

U.S. light crude settled down $1.63 to $50.13 after diving as low as $49.30 a barrel, breaking below $50 the first time in nearly a month. U.S. crude peaked a week ago at $55.67 a barrel. In London, Brent crude lost $1.92 to $47.06 a barrel.

Energy analysts said a win for the challenger Kerry in Tuesday's U.S. presidential election could mean lower crude prices than if President Bush were reelected. Latest opinion polls can barely separate the two.

"Under a Kerry administration we'd likely have a much more interventionist SPR policy," said Jamal Qureshi, market analyst at PFC Energy in Washington. "And when you look out a bit further, Bush is more likely to be aggressive in the Middle East, particularly in Iran."

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[Aggie Hoopsfan]

lol, yeah right.

[Clandestino]

The reserves are meant for crisises...High oil prices are no crisis... So, we use all the reserves so John Kerry and the rest of us can drive our SUVs cheaper then we face a true crisis and we're doubly ed bc we have no reserves... Kerry would make a big mistake by doing this. If you can't afford gas, you need to take public transportation.

[NeoConIV]

cheaper oil prices and a stronger more resolute Al Qaeda. You decide.

[T Park]

if Kerry wouldnt have voted AGAINST drilling in anwoir. Our oil prices would be dirt cheap.

But, Kerry is not for the people. He is for high prices and shutting the working man out of driving his car.

[Brodels]

Kerry is seen as more likely to use the U.S. Strategic Petroleum Reserve (SPR)

Kerry is a dumbass. You don't around with the SPR. It's not meant to be there for price relief.

[Hook Dem]

The Democratic way....short term relief...long term screwing!

[Aggie Hoopsfan]

It's typical though. Something that is meant for a time of war Kerry wants to piss away just to gain popularity for a little while.

Yeah, I want this asshole responsible for my safety and national security...

[T Park]

"BUT I HAVE A PLAN, wich, IS BETTER THAN NOW!"

[Brodels]

"BUT I HAVE A PLAN, wich, IS BETTER THAN NOW!"

He really does have a plan for everything. It's to spend as much money as possible whenever he can.

Whatever your perspective is, Kerry has a plan for you.

He does, afterall, want to be our nation's first black president.