how does the oil price make the stock market go DOWN?

Answer 1

In general, the price of oil as determined by the fluctuating price of crude by the barrel, affects all stocks and the economy .

Companies engaged in energy (and there are many and diverse kinds like the drillers, exporters, servicers and newer energy source producers) usually see their stocks go up with the price of crude oil going up.

Sometimes the entire stock market goes up in spite of oil going up.

Sometimes the entire stock market drops when the price of oil goes up.

Most of the time, the oil companies go up with the price of crude oil going up, while the rest of the stocks drop.

The reason for all this kind of movement is that there is no set reasoning as to the detrimental affect that the escallating price of crude oil has on the economy.

On the one hand, it spells more profits for the energy companies, and on the other hand, it weakens the economy since everyone's budget revolves around their energy expense.

The market is trying to balance out the effects of the price of oil, so it's a constant tug of war.

Answer 2

When there's a lot of selling pressure, that makes the stock market go down. The price of oil greatly affects the price of gasoline, which is a huge percentage of most people's disposable income. When the price of gas goes up, that means less spending money for the consumer, therefore the economy slows down, and people don't feel good about investing when they're worried, so not as much money is flowing into the stock market and it goes down.

Answer 3

On tonight's news, stocks rose despite higher oil costs. On tonight's news, stocks dropped because of higher oil costs. Hear it all the time. I'm sure that the cost of oil has some effect on the stock market somewhere down the line, but I have stopped paying attention to the news.

Answer 4

Imagine that YOU were a company. If oil prices go up, how does that affect your long term net worth? Now that you have to pay more to fill up your gas tank, your profits are being cut. It is pretty much the same thing for companies that have to haul merchandise around the world.

Answer 5

in line with gasoline fee. Algore and the a techniques left environmentalist (the previous US Communist social gathering) desire gasoline expenses above $5.00 a gal. If Bush had no longer been interior the White domicile on the time there might have been a push to proceed to shifting the fee up. the click might have pronounced the positives of the intense gasoline fee. Obama desire the fee to recover from $4.00 a gal. because is concept to be the fee before we get overly dissatisfied. that's additionally believed to be the point the place we start up off questioning approximately paying for the small autos that the Left is attempting to rigidity on us. So Obama desire the intense expenses to be waiting to rigidity the small autos on us and Algore desire it to permit the Left to earnings extra of our freedom. in line with unemployment the Left will proceed to blame Bush and Reagan purely as Clinton did. And with a Left wing press to assist and canopy up for them the customary voter would not understand what is going on. (regrettably many don't desire to appreciate what occurring). in line with the industry the Left wing press checklist this because of the fact the wealthy getting their what getting wealthy at the back of the unfavourable. back because of the click and absence of preparation many don't comprehend what is going on and how that's hurting the unfavourable and center classification extra beneficial than the wealthy.

Answer 6

Oil price increases are inflationary & inflation hurts financial assets badly by devaluing them.

Answer 7

EVERYBODY SELLING AT THE SAME TIME TRING NOT TO LOSE MONEY