Crude oil prices are down over 25% from their peak this year. Gold prices have fallen over 20%. By standard definitions, that’s bear market territory.

Eric Roseman says the ’70s are evidence that commodities can decline sharply in a secular bull market. But the US needs to print money like crazy to support its spending. Eventually, this will relegate the dollar to the dustbin and send commodities soaring again.

Eric says investors should take advantage of the dip in prices to buy stocks in offshore oil drillers, major oil produces and gold miners.

Andy Carpenter says US foreign policy is isolating the country from the rest of the oil-producing world. President McCain/Palin will only make this worse. They want the US to return to the 1950s and the Red Scare. Obama, on the other hand, wants to make friends with the world…

An inherited budget deficit of over $400 billion will tie the hands of whoever is elected president this November.

However, Money Morning’s Martin Hutchinson says a McCain victory would boost defense and Big Pharma stocks. And McCain’s VP choice, Sarah Palin, is a strong advocate of more drilling for oil, which is encouraging for domestic oil stocks.

On the other hand, McCain would likely hold onto Ben Bernanke as Fed chief. This would mean an extended period of low interest rates and painful inflation down the line.

It’s been a volatile year for crude oil prices. After touching above $147 a barrel in July, the black goo is trading back below $110 a barrel.

Don Miller says industry insiders are now betting on triple-digit crude oil prices for the next decade. And long-term oil futures show demand will continue to outstrip supply, as Asia industrializes and proven reserves diminish.

Don says Transocean Inc. (NYSE:RIG), StatoilHydro ASA (NYSE:STO), and Petrobras (NYSE:PZE) are likely to benefit from new drilling projects. And the company that supplies equipment lines for 90% of oilrigs, National Oilwell Varco (NYSE:NOV), is also well placed for profits.

Dave Gonigam writes again about the potential impact of sour U.S.-Russia relations on crude oil prices. Moscow’s envoy to NATO, Dmitri Rogozin, is toughening up his rhetoric to the West, and his hardline views appear to be gaining traction in the Kremlin. Dave says Rogozin will be a key figure in determining how political tensions could affect the energy markets…

Andrew Gordon says there is potential for a resurgence in Chinese energy demand as factories get back to work following the Olympics. But Stephanie Grimmett in Today’s Financial News says China stockpiled too much gas and diesel before the games and will not be importing fuel in the next month. This should keep crude oil prices subdued. It also creates a profit opportunity in oil refinery stocks…

Sara Nunnally says oil is having a major influence in Britain and Dubai, and creating new investment opportunities in both. One is running out of supplies, the other can’t spend its income fast enough. In Britain, this has prompted a new round of exploration permits, with Egdon Resources (LON:EDR) leading the chase. Meanwhile, Dubai’s venture into the luxury international hotel market could see considerable expansion in the sector. More from Sara…

Andrew Gordon at Investor’s Daily Edge says the energy markets are showing renewed sings of life. Geopolitical risk in the Caucasus and a short-lived spike in crude oil prices back over $120 a barrel have sent benchmark energy ETF Energy Select Sector SPDR (AMEX:XLE) up sharply. And the return of Chinese cars and industry following the Olympics should provide a major boost for global energy demand.

Crude oil prices have slumped over $23 over the last 17 days.

This opens up a great long-term investment play, says Jon Herring at Investor’s Daily Edge.

Crude oil will push higher again. And dwindling reserves will force oil majors to shell out trillions of dollars on oil and natural gas exploration.

So follow the money: Buy the strongest oil service sector stocks and ETFs now, and hold for the long term. 

If you’re bullish on mining, don’t buy the companies. Instead, buy the companies that make the shovels and picks… That was conventional wisdom years ago before gold-mining developed into a legitimate investment sector. But that old adage still stands true today – especially in the oil business.