Stocks Fall as Oil Prices Continue to Drop
Posted on January 5, 2015
Crude oil fell under $50 a barrel for the first time since April 2009. Oil prices have now fallen over 50% since their peak. The DOW fell 331 points (1.86%) and the NASDAQ was off 74.24 points (1.57%)CNN Money reports that oil fell as low as $49.68 a barrel. Stocks were already down considerable at midday and ended up down more by the close. Energy stocks were hit the hardest today as you might expect. Chevron finished down 4% at 108.08.
The Times reports that reports of increase oil exports from the Middle East combined with increased U.S. production help fuel the new drop. These are the same concerns that have led to the drop in oil prices over the past few months. U.S. gas prices have fallen along with oil prices and at least two states now have an average price per gallon for regular gas of under $2.
The Street reports that Saudi Arabia's King Abdullah is ill and receiving medical attention. Other reports have said he is suffering from pneumonia. Take a look: