There are many ways to look at this but maybe the best way to put this is: "The world for the last century has run on oil."
So, when oil is cheap it usually means not many people are buying it or (not as much business is being done worldwide). So, part of the reason for the low prices of oil is the collapse of the Chinese Business world. So, people aren't buying gas as much in China now so this changes the price of gas and makes it go down. Then Saudi ARabia effectively put the Soviet Union out of business the last time they did this by overproducing. Also, the U.S. is now the largest producer of Oil on Earth. Why?
Because oil became just so profitable for so long vast amounts of capital were spent on developing new or old oil sites here in the U.S. including Shale Oil both here in the U.S. and in Canada. This freaked out Saudi Arabia so they are now having a price war with the rest of the world. Their motivation: "To stay in business long term and to wipe out higher cost producers than they are." They can produce oil for less money at a profit than anyone else at present.(Which was also a main factor in the fall of the Soviet Union in the late 1980s). Because then like now their biggest export (just like Iran, Iraq, Venezuela etc) was oil and still is.
So, since the world literally has run on oil for over 100 years now the money behind this is one of the biggest investments in the stock market worldwide. So, without this money flowing into the stock markets of the world at previous rates it also makes the world stock markets cash hungry in a way.
In the U.S. though we too "Run on OIl" for the most part this is changing here because of our vast diversity of money making resources and creativity. However, Countries like Russia, Iran, the Islamic State, Venezuela and others are one horse wonders and therefore are in serious downturns because of the Oil bust. So, these are just some of the factors in this present worldwide Stock market downturn.
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