That's why it's called a Futures Market

Yet another lesson in the basics of Free markets today...

The Mainstream press reads: Crude oil was little changed below $139 a barrel in New York after tumbling more than $6 yesterday because of concern a slower U.S. economy will curtail demand.

Prices dropped as Federal Reserve Chairman Ben S. Bernanke said risks to growth and inflation have risen, in testimony to the Senate Banking Committee. He abandoned a June assessment that the threat of an economic slowdown had diminished.

Then there's this alternative analysis from a bit earlier in the day: In a dramatic move yesterday President Bush removed the executive-branch moratorium on offshore drilling. Today, at a news conference, Bush repeated his new position, and slammed the Democratic Congress for not removing the congressional moratorium on the Outer Continental Shelf and elsewhere. Crude-oil futures for August delivery plunged $9.26, or 6.3 percent, almost immediately as Bush was speaking, bringing the barrel price down to $136.

Now isn’t this interesting?

Regardless of the reason, the larger point is still the only point--the market reflects the future possibilities of increases, decreases in supply, demand and even the occasional indirect effect (think Iranian missile tests). And Democrats continue to be wrong and or stupid on the entire subject...