Are oil prices coinciding with lifted bans or demand worries?

Okay, I admit, that’s an incredibly awkwardly phrased post title (I’m making a habit of those), but I wanted to ask you all a question.  What I noticed some weeks ago was that, the moment Bush lifted the executive ban on offshore drilling, oil prices dropped.  My view was that the mere expectation of increased domestic oil supplies was enough to put in a spike in the never-ending escalation of oil prices.

Today, however, I’m assured by Reuters that oil prices dropped because the market is “worried”:

Oil falls to 12-week low on demand worries

Oil fell to its lowest level in nearly three months on Tuesday, extending a steep slide since mid-July on mounting evidence high prices and a souring economy were cutting into world energy demand.

The drop coincided with a firmer U.S. dollar, which may have reduced the appeal of commodities to some investors playing the strong negative correlation between the markets in recent months, analysts said.

There is no mention at all in the article about Bush’s actions.

I’ll always be the first to admit that I’m woefully ignorant about the ways of the market.  However, my understanding has always been that, whenever there are oil worries, oil prices go up.  This is the first time I’ve heard of worries driving prices down.  And another thing — considering that rising oil prices have been terribly damaging to world economies, why does this article make it sound as if dropping prices is a bad thing?

Can anyone explain this to me?