Well it’s only Monday and already we have a winner for the Dumb Quote of the Week. This week’s winner is Hillary Clinton, whose ability to pander to the crowd is second to none. On Saturday, Hillary was speaking at the Manchester YWCA and she said:

“I predict to you, the oil-producing countries will drop the price of oil,” “They will once again assume, once the cost pressure is off, Americans and our political process will recede.”

This is yet another instance of a politician either displaying their own ignorance, or playing to the ignorance of those they are speaking to. For Hillary Clinton, and those who see nothing wrong with her statement, please note that the price of oil is not determined in the same manner as the price of a new car for example.

Oil is a commodity the same as Gold or Silver and as such, oil futures trade on an international commodities market. Oil producing countries do not determine on their own at what price to sell oil for. The price is determined by traders, taking into account supply and demand. While it is true that oil producing countries can largely affect the price of oil based on the amount of oil they sell on the open market (i.e. increasing supply), they cannot on their own determine prices.

If during Hillary Clintons inaugural address (yes I know that is a very scary thought), she were to proclaim her commitment to ending Americas dependence on foreign oil, it would barely cause a hiccup in oil prices, if commodity traders even paid attention at all. The fact is, merely stating your intention to end dependence on oil does not decrease the demand for oil immediately, therefore prices would remain unchanged.

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Dumb Quote of the Week, Election 2008, Hillary Clinton, Politics