Downward oil price momentum and the news cycle

Haven’t we been told time and again that much of the oil price rise was due to to external event risk like political instability and war? Well we’ve got this is spades and oil is still falling.

Today, Russia has launched a war against its neighboring country Georgia, who’s ex-President Eduard Shevardnadze was once Soviet foreign minister. This is a big deal. Also in the news is confirmation that a coalition of Pakistani politicians are looking for a way to impeach staunch U.S. ally and military dictator Pervez Musharraf because he is thwarting democracy. Pakistan has nuclear weapons, by the way.

It doesn’t get much bigger than that.

And oil: what has it done? It has fallen to a fresh low. What does that tell you about price momentum?