McCain: Bush Caused Oil Price Drop

Sen. John McCain was talking oil prices today at a campaign stop in Wilkes-Barre, PA, and he credited President Bush with the over $20 a barrel drop in the price of oil since July 11. Oil closed on that day at $147.27 a barrel. On the following Monday, President Bush announced that he was lifting the executive branch ban on drilling for oil in the Outer Continental Shelf. The next day, oil prices dropped greater than $7 a barrel and have continued dropping, finishing today trading at $124.65.

McCain, who has called on Congress to lift its moratorium on offshore drilling, said that Bush's call for expanded exploration had signaled to the markets that the United States may open up its supplies, causing speculators to bid down the price. The White House was more modest, with Press Secretary Dana Perino accepting credit for the price drop, but hinting that other factors could have been at work as well.

"I don't know if we fully deserve the credit. We don't predict what happens in the market. We can't really tell. Certainly, taking that action would send a signal that at least the executive branch is serious about moving forward and increasing the supply we have in America."

McCain has taken to mentioning gas prices on the campaign trail at every opportunity in hopes of ratcheting up pressure on his opponent, Sen. Barack Obama. The campaign recently released a national television ad focusing on what the campaign terms as Obama's obstructionism on oil development and its impact on gas prices. It is a smart strategy. Polls show that the public broadly backs McCain's call for increased drilling, and it shows that McCain is in touch with ordinary people's frustrations about the high cost of gasoline.