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The amazingly unbelievable 2-year oil price cycle. Oil prices apparently no longer have anything to do with supply and demand, but instead with pre-election Octobers in the USA:

The likelihood of finding $2-a-gallon gasoline in some parts of the U.S. is increasing by the day.

The nationwide average at the pump is already below $2.50, and with a huge decline in oil and gasoline futures today analysts say the outlook for motorists is only getting better.

"We'll see sub-$2.25 a gallon retail (prices) by October [2006]," said Tom Kloza, director of the Oil Price Information Service, adding that prices below $2 can already be found in Kansas, Missouri, South Carolina and other states.

Surprise, surprise. This is exactly what happened two years ago: "Saudi Arabia may be hatching an October [2004] surprise to benefit President Bush by lowering crude oil prices before the November election, Washington Post reporter Bob Woodward said in an interview aired yesterday. Saudi Prince Bandar bin Sultan - the longtime ambassador to the U.S. and a close Bush family friend - told the President that oil production will get a boost to strengthen the U.S. economy, said Woodward, author of a new book on White House war planning for Iraq."

Only this time, not boosted production but "lessened demand" is providing the "official" "explanation."

See also this chart and look at the overall trend in gas prices during Dubya's tenure from 2001 to the present. Contrast with the Pax Clintonia of 1993 through 2001.

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