West Texas Intermediate crude prices fell back below $90 per barrel today as uncertainty over the situation in Spain continues to overhang the post-QEternity markets.  Brent Crude held onto $108 per barrel putting the spread between them at $20, the most this year, which suggests the low WTI prices are more of an American phenomenon and a headline-grabbing move on the eve of the first presidential debate than it is about supply and demand issues.

Yesterday’s inventory number was a lot lower than anticipated and natural gas prices have not followed oil’s heaviness, quite the opposite as they’ve recovered quietly near $3.47 per MM BTUs, having now erased 75% of loss from this time last year.

One has to wonder just how long they are going to drag out this will they/won’t they game with Spain, who are going to ask for a formal bailout.  For anyone to seriously take even a medium-term bearish stance on gold and oil in this monetary environment should have their head examined.  This drama, like the Greek Tragedy from this time last year, is just season two for this show.  There is zero chance that Spain will not be bailed out.  They will be forced to if necessary.

Don’t believe that?  Ask the Greek.s Therefore, look at every pull back in commodities as a gift from your central bankers and turn off the deflationistas who still to this day do not understand the role that central banks play in the world of high finance.  I would not be surprised to see a shake out in the WTI price further to ensure that President Obama wins re-election, especially if somehow Mitt Romney doesn’t kill his own campaign tonight.