By Rachel Lau
On August 24, Wallstreet received a huge surprise in stocks. The Dow lost over 1,000 points in early trading. A bad plunge like this hasn’t happened since October 2008.
At the end of the day the Dow had lost 588 points, which has been the worst one-day loss since August 2011.
Many factors influence the global markets. China in particular is a factor that is heavily focused on because of its impact. In June, China’s market went down -40% from its original number.
With all of this loss in stocks, it’s also affecting oil and gas prices. On August 28 oil prices dropped below $40 for the first time since the Great Recession due to the fall in stocks. Senior Braden Naumann said, “I think gas prices are reasonable.”
Carson Fritsch, who is an oil analyst, expects China’s problems to push a barrel of oil as low as $30 within the next few months. The global economy depends on the price of oil to boost our economic growth. Along with our own economy, Europe’s, China’s, and developing country’s are all weakening.
At the same time, vehicles are becoming more energy efficient, so the demand for fuel isn’t what it once was. Senior Ethan Lane said, “I think gas prices are too high and they drain my bank account. I’m glad they are slowly dropping.” The two largest consumers of oil are The United States and China.
Gas prices have fallen 40 percent in the past 6 months. There will always be a fluctuation in gas and oil prices as they have a history of doing so.
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