Lower oil is not all good news: Trader Art Cashin

Cashin: Eyeing Nasdaq rollover
Cashin: Eyeing Nasdaq rollover   

The global plunge in oil prices is a bit of a double-edged sword, veteran trader Art Cashin told CNBC on Monday.

Of course, lower oil prices usually means lower gas prices, which means consumers have more money to spend on other things, Cashin, director of floor operations at the New York Stock Exchange for UBS, said on "Squawk on the Street."

Read MoreOil slides as OPEC goes hands-off

"The good news it'll work its way through the pump and that'll be a benefit to the U.S. consumer," said Cashin, who has more than 40 years of experience on Wall Street. "But it's going to disturb some of the energy stocks and maybe disrupt some of these foreign economies again."

Indeed, it seems oil prices are unlikely to climb anytime soon.

Contrary to market expectations, Kuwait said OPEC was unlikely to cut production to support prices, while Saudi Arabia has privately told oil market participants it could be comfortable with $80 for oil.

Read MoreSaudis tell oil market: Get used to lower prices

"Certainly the message from Saudi Arabia seems to indicate they're not interested in doing anything to stop the drop in oil," Cashin said. "So I think that will continue to put some pressure on prices."

Turning to the stock market, Cashin said the S&P 500 index will need to stay above its 200-day moving average at the 1,905 level, the low reached in August.

Read MoreStocks to rally after 10% correction: Pro

"If they can hold there, they might be able to build a little bit of a bounce out of things," Cashin said. "I think we'll have to work our way through at least a couple of days this week to get a better feel for it."

—Reuters contributed to this report