CNBC Blog Credits Obama with Oil Drop
The price of oil continues to plunge â off more than $25 a barrel from its high. Naturally, someone was bound to credit âŚ Democratic presidential candidate Barack Obama. Only one problem, the financial expert who did so is also a recent Democrat donor.
Chief Bond Market Strategist Tony Crescenzi, of Miller Tabak +
He claimed Obamaâs August 4 energy speech reaffirmed that position because the candidate âmight tap the Strategic Petroleum Reserve (SPR)â if elected. He gave Obamaâs speech partial credit for the $3.69 drop in the price of a barrel of oil the same day.
âObama said âwe should sell 70 million barrels of oil from our Strategic Petroleum Reserve for less expensive crude, which in the past has lowered gas prices within two weeks,ââ Crescenzi wrote. He went on to claim: âIf Barrack Obama wins the presidency, the price of oil could fall $40 per barrel.â [sp]
CNBCâs on-air experts didnât exactly agree. John Kingston, Plattsâ director of oil, told the network Obamaâs speech had a questionable impact on the decline in oil prices. âWell, I question whether in fact it has had the impact, actually,â he said.
Another CNBC expert, Stuart Frankel broker Steve Grasso agreed Obama had nothing to do with the drop. âI donât think it has anything to do with Obama,â he explained. Grasso said there were a âbunch of different catalystsâ impacting the market including the end of a threat from Tropical Storm Edouard and changing geopolitical realities. âI think the oil play near term is over,â he added.