Here's Why a Drop in Oil Prices Might Be a Warn...

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.

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