Here's Why a Drop in Oil Prices Might Be a Warning Sign for the Economy

The price of Brent crude oil has risen more than 90% this year to about $120 per barrel. The main catalyst was the outbreak of the Iran war in late February, which throttled oil shipments through the Strait of Hormuz -- the chokepoint for roughly 25% of the world's maritime oil trade.Rising oil prices generated tailwinds for big oil companies like Chevron (NYSE: CVX), but generated fierce headwinds for other sectors dependent on low or stable oil prices. Therefore, a pullback in oil prices might seem like a green flag for those struggling companies. However, a steeper-than-expected drop could actually be a grim warning sign for the economy.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool