While the Presidential election is still too close to call, oil prices fell sharply on the world market on Monday amid speculation that a Kerry Administration would reduce tensions in the Middle East and help increase oil supplies. As a result, oil prices dipped below $50 a barrel for the first time in nearly a month before closing at $50.13.

The Bush Administration has continued to add more oil to the nation's strategic petroleum reserves or SPR despite the record high prices. Senator Kerry indicated he would stop adding to the SPR in order to help increase supply and reduce prices.

PFC Energy in Washington has forecasted a price of $43 per barrel in 2005 if Kerry wins the election while a Bush win has a forecasted price of $48 per barrel.

In addition, many experts feel that Kerry will invest more heavily in conservation and alternative fuel sources rather than Bush, whose family made its money in the oil industry.

Fadel Gheit, a senior energy analyst at Oppenheimer and Company said, 'Conservation, in my opinion, is the only way to get us out of this hole which we put ourselves in.'

Senator Kerry has indicated he would favor a $30 billion dollar energy package that would increase the cleanliness of coal burning energy sources and encourage U.S. auto makers to produce more energy efficient cars over the next decade.

Analysts say the outcome of Tuesday's election will have a short term effect on oil prices as well.