Why did the price of oil drop

Question

I'm still new to the whole stock market bubble

Answer 1

Either due to supply increasing or demand dropping, or both.  This makes a given commodity cheaper.

Scarcity and higher demand make a commodity more expensive.

Answer 2

Demand destruction is scaring investors, causing a massive sell off which has just started recently. It's happened in the past. Bubbles may take awhile to burst, but they always do. Any bullish news for the oil market just isn't helping advance prices at all, which is a sign that more of a drop is still to come. Demand is still playing the major key in all of this.

Not to mention the fact the dollar is starting a strong rebound against other major currencies such as the Euro which helps reduce the value of oil.

Another reason is due to all of the major storms down in the Gulf barely effecting the oil rigs.