While the stock market continues to suffer, oil prices continued to fall even more steeply. The U.S. benchmark, West Texas Intermediate, is down almost 40 percent since a high in October. Brent crude, the international benchmark, fell yesterday to its lowest levels in 15 months.
The sharp decline in oil prices has been largely attributed to an oversupply shock of oil, caused by U.S. shale production and production cuts by OPEC nations. The Fed's rate hike this week may also have spurred further downward price pressure.
But also creeping into the picture: The demand side of the crude equation is starting to slow around the globe. Oil consumption in China, India and other economies across emerging Asia—the source of two thirds of global oil demand growth—is slowing. Some analysts say oil demand next year could grow at its slowest pace in eight years.
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