The price of crude oil is decided by the fluctuations and relative balance of supply and demand and is closely watched by economist who look at the price of oil as one of the leading indicators of changes in economic condition, such as economic slowdown or even recession (if oil prices fall) or inflation (if oil prices rise). The global economy is highly dependent on oil to function and to grow and the demand equation for oil is fueled by both the developed economies (US and Europe) as well as the emerging market giant such as China. The two largest consumers of oil by far being the United States and China.
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The Black Monday stock market crash of October 19th, 1987 was the largest one-day percentage decline in the Dow Jones Industrial Average. The crash was a genuinely perplexing event. To informed observers it seemed to have little basis in economic fundamentals. There were various "hand-waving" theories, including that the introduction of automated trading on the Dow had injected instability into the market. However, at the time, Black Monday appeared to come out of nowhere.
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