Oil is down $2.25 today. Most of this is from the realization that there won't be any real harm from Ernesto. But, looking at the chart on oil today, there wasn't a lot of "built up" angst going into the storm. Oil wasn't exactly rallying going into the weekend. Now, it's getting dumped faster than last week's newspapers:
I'm also leaning towards a long slow decline in the price of oil moving forward. The economy is slowing, and demand will do the same. As the U.S. demand starts to slow, this will have a like effect on world demand. There are many pundits out there that have changed projections from $100 a barrel to $50 barrel. Makes sense. As long as the hurricane season continues to show no real threat, then we'll likely see those prices.
But, there's still one issue that hasn't been resolved yet: Iran. The country remains intent on pursuing its nuclear technology. In the past, this has been negative for the outlook of oil. Seems to be being ignored at the present. Also, gold has fallen hard overnight. Shouldn't the recent revelations over the weekend, to include missile launches and hard water systems testing for nuclear processing, have had an affect on the price of gold in the other direction? That's what I would have assumed.