Stocks’ Swoon Finally Hits Oil

The ongoing turmoil for Chinese and U.S. equities may signal the start of a dip in global oil demand

The past week’s disconnect between crude oil prices and the decline of stocks may be starting to unravel as oil traders grapple with a fundamental issue: How sound is China’s economy?

A 9% sell-off in Chinese markets Feb. 27 sparked a weeklong slide for stocks in Asia, Europe and the U.S., and the selling continued Mar. 5. For much of last week, however, oil prices were oblivious to equities

But for now, the new math on oil is resting firmly on whether China’s stock market correction reflects underlying weakness in one of the world’s fastest expanding economies