I am not much on conspiracy theories but I thought this was interesting. I was in the break room at work and overheard something on Fox News saying that there was absolutely no relationship between gas prices and the upcoming election. So, there might be something to the theory after all.
Is the Bush administration manipulating oil prices to win elections? By Daniel Gross - Slate Magazine: "The 2006 theories are more subtle. The administration has taken steps recently to remove a marginal, but important, buyer from the marketplace. After having delayed the summer's deposits to the Strategic Petroleum Reserve until the fall, the Wall Street Journal Monday reported that, 'The Energy Department will hold off purchases of oil for the government's emergency reserve through the upcoming winter.'
And then there's the strange case of how Goldman Sachs, the investment firm formerly run by Treasury Secretary Henry Paulson, this summer shifted the weighting of gasoline in the Goldman Sachs Commodities Index in such a way that forced investors to dump speculative positions in gasoline, hence pushing down prices. It's a convoluted story, but this article from last Friday's New York Times lays it out pretty well. (Blogger Tim Iacono makes the case here, and University of California, San Diego, economist James Hamilton provides his own description and debunking here.)"
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