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Why does the drop in the price of oil causes the financial market turmoil?


In all other instances, a drop in prices of anything is a good thing. Why is oil different? The consumer relish in cheap gas and cheap oil. Why are financial markets react negatively to lower oil prices?

 

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Tamara Wilhite (tamarawilhite) says

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19 months ago
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Ben Evans says

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    Jack Lee (jackclee lm) 2 years ago

    Our trade deficit is helped by cheap oil. Why doesn't that translate to better economic climate? I know big oil companies are hurt by lower profits, but they are only a segment of the GDP. It doesn't make sense that they should affect the market.