oil
Mark d asked:


I have noticed that in todays economy, when there is a huge drop in the DOW, there is a also a drop in the price of oil. When the DOW goes up, so does the price of oil. How do these two elements relate to each other?

I personally think that the drop in oil is good, as we get gasoline cheaper. On the other hand, we need a stronger economy. The way I understand it is cheaper oil means lower operating costs of companies which means a stronger economy. But I dont understand why the drop in the DOW results in the drop in gas prices.

CHAS

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Those holding oil futures contracts is having to sell them to have cash to off their debt . With this happening to to many it drives the price down .


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