Twoweek start to a year ever. The dow lost more than 390 points today all the major indices fell more than 2 . Analysts blame the selloff on another big drop in oil prices. Crude oil closed below 30 a barrel for the first time in 2003. John terret joins us. John this is the latest big drop in oil and big drop in stocks. A spree for commodities traders, today u. S. Stocks sold off across the board on friday. The reason wall street is worried that too many Commodity Companies will go belly up now that oil is in the bargain basement. A sea of red driven by an ocean of black. Investors are scared the low price will damage the Global Economic recovery. Terrible start to the day terrible start to the year, the selling is universal but today the stocks that did so well last year got hit more than the usual stock. The problem is theres a glut of oil thats why its so cheap, devastating for the countries trying to produce it. First theres overproduction by saudi arabia which has opened the spigo
Terrible start to the year. Selling is university but today, stocks got hit more than the average stock. The problem is the world has too much oil, its a glut, thats why its so cheap. While that helps consumers, it devastates countries trying oproduce it. Saudi arabia has opened the spigot in an effort to hobble iranian oil which will flow soon once sanctions are lowered. And while the economy can take low prices for a couple of years, not true for nigeria where the economy is being hurt by cheap oil and wants an emergency session of opec to try to negotiate a price like. And chinas economy, far too much companies are at risk of going under. Money was so easy by Central Banks for so long that countries were able to borrow money that shouldnt have been able to borrow money, and they may not be able to pay that money back. Reporter so is there a perfect price point for oil that will keep motorists happy but not risk global recession william. Nobody knows what exact optimum price is but s