Lower gas prices cut both ways politically

WASHINGTON, Aug. 13 (UPI) -- Dropping gasoline prices may be robbing Democrats of a potent campaign issue against incumbent Republicans but they're seeing benefits, too, an analysis says.

With oil prices dropping in recent weeks, and the average pump price of gasoline falling 35 cents per gallon from a high of $4.16 a month ago to $3.81 on Aug. 12, Democratic Party candidates from likely U.S. presidential nominee Sen. Barack Obama, D-Ill., to U.S. House of Representatives hopefuls are losing a big issue, the Southern Political Report said Wednesday.

Dropping gas prices at first glance seem to be more of a benefit to probable Republican presidential nominee Sen. John McCain, R-Ariz., and the pro-Republican impact could grow if energy prices continue to decline and the dollar continues to strengthen against the euro, the report said.

But Democrats also could see benefits from lower gas prices. If the urge to "do something now" about gas prices disappears, that would undercut McCain's proposal to open large areas of the United States coastline to offshore oil drilling.

The report says Republicans have gained traction by pointing out that Obama doesn't share the "drill now" strategy, which polls indicate was favored by a majority of Americans.