What's new
By:

Oil bust inevitable

I saw it down almost $4 this morning. The lowest that I have ever seen since I started watching it per barrel.
 
Deem oil prices. I really am starting to wonder how low it well actually go. Paying $2.09 here
 
OPEC just released their World oil outlook.

eAiqmK7.webp

Here is their medium term outlook chart. Notice they expect both OPEC and Non-OPEC crude to decline in 2016 but Non-OPEC crude starts a slow recovery in 2017. They say OPEC crude will not start their recovery until 2019.
Click to expand...
 
That market the last two days has been all over the place like a roller coaster.
 
Oil prices sure are tanking, wow.  Been going down around 5% by the day this week.

Concerning Real Estate markets in the oil areas:  http://oilprice.com/Energy/Energy-General/Cheap-Oil-Hits-Housing-In-North-Dakota-Texas-and-Others.html

Some interesting points from that article:

North Dakota is probably the most vulnerable to a downturn in housing because of low oil prices.
Click to expand...
New home sales were down by 6.3 percent in North Dakota between January and October of 2015 compared to a year earlier. Housing prices have not crashed yet, but there tends to be a bit of a lag with housing prices. JP Ackerman of HouseCanary says that it typically takes 15 to 24 months before house prices start to show the negative effects of an oil downturn.
Click to expand...
According to Arch Mortgage, homes in North Dakota are probably 20 percent overvalued at this point. They also estimate that the state has a 46 percent chance that house prices will decline over the next two years. But that is probably understating the risk since oil prices are not expected to rebound through most of 2016.
Click to expand...
 
You must log in or register to reply here.
Back
Top