The drop in oil was perhaps the 'final straw' for US credit markets, strategist says

"Roughly speaking, you can make the argument that below $40 oil, most of these names, especially in the high-yield space, really can't survive," he said. "That drop in oil was perhaps the final straw for the U.S. credit markets."

All these markets – treasuries, equities, credit – are signaling that right now, the U.S. is very close to a recession within the next four to eight weeks.Stephen Schork, editor of the Schork report, added that the U.S. shale industry was already on the cusp of "major bloodletting," even before Riyadh and Moscow's respective decisions.

"The decision by Saudi Arabia and by Russia over the last week is just going to hasten the demise of a significant portion of the U.S. shale patch over the next year," he said.

Oil without appetite for eating it doesn't work.

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