The price of oil has plummeted at the same time as shareprices in the US, Asia and Europe nosedive, in a frenzied sell-off reminiscent of the 2008 financial crisis.
As markets react to the downgrading of the US credit rating, and with tremors continuing to be felt across the eurozone economies, investors are losing confidence in the US, European and Asian markets.
Although the Asian stockmarket had regained its losses this morning, analysts doubt that confidence in the market will last, as investors increasingly turn to gold as a safe investment.
The FTSE was down 4.1 per cent, the Dow Jones down by 5.55 per cent, and the Nasdaq down by 6.90 per cent, according to data on the BBC website.
Meanwhile, Spain and Italy are struggling to prevent a government bail-out and investors believe the European Central Bank (ECB) will soon buy up Spanish and Italian debt, in what seems to be an echo of recent events in Greece.
Oil reached its lowest price in six months, at $100 a barrel, although moderate recoveries have been made.