What Relationship Does the Stock Market Have With World Oil Prices?


A 2008 study of the relationship between oil prices and stock market performance from the Federal Reserve Bank of Cleveland found that any correlation between oil prices and stock prices is weak, according to NASDAQ. Certain sectors, such as the Dow Jones Transportation Index, were hurt when oil prices rose.

Another 2008 study conducted by an International Monetary Fund economist revealed that the correlation between stock market performance and oil prices is either nonexistent or very weak, reports Investopedia. The economist measured changes in crude oil prices and the S&P 500 as a proxy for stock prices and found that the two only occasionally moved in the same direction at the same time.

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