Cheaper oil means more money for other things, i.e. stocks must go up, right?
The Gulf nations are selling 25% of their oil to U.S. and then they invest 50% of account surplus back into U.S. economy. That means, for every $1 we pay for oil we get $2 back in investments, mostly going to Treasuries and stocks. So, when oil drops the amount of money Saudi Sheiks are investing into our stock market drops even more. Figure out.