A strong U.S. dollar has also contributed to falling commodity prices, and Cashin noted that if the dollar stabilizes, those prices could get "closer to stabilization."
However, "there are some benefits in seeing these low prices. It's a tax cut for the driver and people are getting a little bit of a break. And on a geopolitical level it's a poke in the eye for [Russian President Vladimir] Putin because he depends on higher oil prices," he said.
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Looking ahead to next week's Federal Reserve meeting, Cashin called it "very important." Many are expecting the central bank to drop the phrase that says there will be "considerable time" from the end of its bond-buying program to the first rate hike.
"I would love to hear what the tone is. I want to hear the speakers that come out after it and how they put their positions out," Cashin said.
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—By CNBC's Michelle Fox. Reuters contributed to this report.