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Oil is 1 of 3 'unhinged' markets: El-Erian

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Oil is among the markets that have become "completely unhinged," Allianz Chief Economic Adviser Mohamed El-Erian said Thursday.

"When you get an unhinged market good names get hit quite hard, and unjustifiably so," he told CNBC's "Squawk Box, " adding that such moves can lead to "unpredictable correlations."

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The recent acceleration to the downside for crude has hit the stock market, with energy shares under severe pressure. Wall Street has logged five down sessions in the past six, as oil prices jump all over the map.

"So this is a security selection world for the unhinged markets," which El-Erian also said includes commodities as a whole, emerging market currencies and high-yield bonds.

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