Can Oil Remain Bullish? Some Call the Commodity on its B.S., But Maybe Too Soon.

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Earlier this month, consumers and investors alike were bracing for another spike in gasoline prices after the Prudhoe Bay oil field shutdown. The New York Times and the Wall Street Journal discussed a price hike’s impact on Americans’ consumption patterns, Bush’s “plan” for sustainable energy and the prevalence of ethanol. How will America handle another price increase?

But now investors might be facing a different question—what if there is no increase?
The price of oil is on a steady decline this month, down 4.4%. If oil continues to decline, “it is going to be much more difficult to argue that crude oil remains a bull market and that all dips are buying opportunities,” says Tim Evans of Citigroup.
But, some analysts are convinced this is nothing but a dip in a sturdy market that will soon climb again — they note Goldman Sachs’ decision to reduce its exposure to the commodity and a smaller than expected impact of the Alaska pipeline shutdown as some of the short-term factors contributing to the lower prices. But others warn that the market has become accustomed to the “geopolitical uncertainty” surrounding the oil market. Deutsche Bank’s Mark Vonderheide says traders are “balancing the fundamental weakness of this market against the probability of some global event or continuation of global events in Nigeria, Iran or Venezuela….Barring an event, it’s very likely we’re headed for much lower oil prices.”
“Barring any event” — Perhaps, we don’t need to be concerned about lower prices quite yet.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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