Fear is what has been driving stock markets to recently crash. Why? Because of plunging oil prices and China’s falling economy. Saudi Arabia is determined to control the world’s oil prices so refuses to reduce its pumping in the hope of putting other types of energy companies out of business.
Oil prices have plunged from US$110 per barrel to a low of US$26.19 a barrel. This is destabilising for the world economy. It has caused stress in the credit market as oil is tied to many products.