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What's behind dropping oil prices?

The Dow fell about 500 points Wednesday before recovering to close down 249 points
Markets down again as oil prices fall 01:33

It was a wild ride on Wall Street on Wednesday.

The Dow plunged more than 500 points, but recovered nearly half of that, closing with a loss of 249. Falling oil prices have investors rattled.

The pros and cons of low oil prices 01:30

Mellody Hobson, CBS News Financial Contributor, says the real story behind the dropping oil prices is China.

"Oil is basically getting hit by China's shrapnel," Hobson said of oil closing at $26.55 a barrel.

In the video above, Hobson also addressed the Dow's over eight percent drop since the beginning of the year, saying the average investor hasn't lost as much as some headlines are suggesting.

"The typical person has lost about $6,000 this year. That sounds a lot better than a trillion."

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