What’s next for the markets given declining oil prices?
Oil prices are down about 3% in the past month. But, what does that mean for stocks?
Nearly one month ago, it seemed more than possible the United States would take military action against Iran’s Syrian allies. That helped drive the price of West Texas Intermediate Crude Oil contracts above $117 per barrel for the first time in over two years.
(Read: Brent rises in heavy spread trading, eyes on Iran)
Since then, oil prices fell as the US government found it difficult to build support for intervention. As the probability of American action decreased, it took oil prices down with it.
Yesterday, addressing world leaders at the United Nations General Assembly, US President Barack Obama opened the door to negotiations with Iran on Tehran’s nuclear ambitions. This diplomatic overture to a major oil exporter helped bring down oil a little more. Oil ended trading in the $103 range, down 5% since the end of last week.
(Read more: US oil
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