Oil prices actually stabilized on Wednesday. But the large drop in crude that started last fall and has continued into 2015 has definitely been one reason why traders have been rattled.
“It feels like we’ve gotten shot out of a cannon this year,” said Bill Stone, chief investment strategist with PNC Asset Management Group. “People are worried about oil and looking for answers.”
Still, cheap oil may not be a bad thing. Stone noted that one of the reasons December retail sales fell was because of how low gas prices plunged last month.
But the weakness in oil is raising concerns about the health of the global economy. The World Bank’s new gross domestic product, or GDP, forecasts on Wednesday didn’t help assuage any of those fears.
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