Most are blaming the Crude Oil wars for this latest market free fall, at 3:00PM EST the DJIA was down 270 points. This is getting deep, and I am not talking about the latest and greatest oil wells being drilled in arid deserts of Saudi Arabia either. This crude oil war being waged over OPEC dominance and American ingenuity is reaching a crescendo and fast. Most pundits believe crude oil may see $50 a barrel by February and it certainly looks like that may be the case.
The energy sector is getting slammed as of late. Saudi Arabia has already cut their outlook for next year while America's oil export ban is still in place. Congress may have to lift the 1974 ban to save America's oil industry. Saudi Arabia is certainly hoping Congress will not act as their pledge to not cut production will, eventually, drive many western oil producers out of business.
While the UN and most economic shills in the United States are stating that the world economy will experience a boom in 2015 most realists know the world's economy is experience a major slowdown. So there is more than one factor involved in this latest market tumble.
The VIX, or CBOE Volatility Index, spiked today around 3:00PM EST 22% to 18.19.