Shale production continues to rock the global oil market and is making our target of $88 a barrel looking more likely any day. Since crossing $100 a barrel, which I equated to crossing the Rubicon, oil had has its biggest monthly drop of the year.
The government shuts down and the outlook for energy just got a little murky. While transportation is not directly impacted by the government shutdown, a prolonged stalemate could slow the economy and U.S. oil demand.
With gold and silver capitulating and Treasury yield rising, oil will have to balance the bearish implications of the Fed talking about an exit strategy versus the disinflation that is now plaguing Europe.