Why Oil Prices Dropped and How They Affect The Market – Explained in Just 10 Points

So basically what we need to know is that everyone on this planet (billions and billions of people) are dependent on oil directly or indirectly for all the basic necessities like food, transport and daily products. Now that we know this, let’s find out how the entire planet is being manipulated by a few powerful players who have been able to capitalise on this human dependency:

1. So it started when a few countries and their capitalists decided to get together to control the production and supply of oil – the one ingredient that is capable of turning everyone into addicts. (Sure enough we cannot live without oil, and thereby, are addicts)

2. These select few ultra rich countries and capitalists get gargantuan amounts of money for the oil from the billions of people. Imagine the money coming from billions of people and getting accumulated with a collective few. That’s a lot of money!

3. The money from billions of people reaches few very rich people who don’t know what to do with the excess amount of money. Even after spending ultra lavishly on all their luxuries, they will still be left with a lot more.

4. Unable to spend the money generated from the bazillions of people, they decide to invest it in the stocks.

5. Suddenly, USA – a major importer of oil, becomes the biggest oil producer due to its shale oil resources in Texas and North Dakota.

6. There is now surplus oil in the market as none of the oil producing countries want to take a back seat and stop producing oil.

7. So the billions of people are glad at the oil price drop and are happy to spend less money on the fuel without a clue that if this trend continues, they would end up losing jobs and hence will not be able to afford the fuel even at low prices.

8. Now how will they lose jobs?

Remember the few capitalists controlling the oil and using the money to invest in stocks? They cut down on their investments in the stocks.

9. This is a terrible news to the stock market as without investments they are going to drop like hot bricks. And the economy? It drops too. This then results in a stock market crash, with everyone retrieving money from the market, rather than investing in it

10. Thus, if the oil prices continue to drop, there will be recession.

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