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If Katrina can make prices go up the next day, an offshore drilling agreement will make them go down. It's all about speculation. The speculators have realized that $4 gas cripples the economy and will cause a sharp drop in demand (what we see now). But, as extreme as this sounds, $4 gas was a wake up call and somewhat of a good thing. It gets the ball rolling on alternative fuels that we will need badly in the next century, oil is not forever.
Expect to see oil settle down between $75-$90 a barrel over the winter, and gas about $3.25/gal during the winter months...unless a catastrophic storm hits the gulf and causes a panic again.
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