Oil Freefalling & Interest Rate Policy
A: The price of oil is tumbling today below $69/Barrel with the last trade at $68.60 a barrel. Feel free to 'call me a god, not the god', if you like as I talked about the price of oil starting a quick correction late last week, with the rise in inventory #'s, hard stance on Iran, and Nigeria supply of 500,000 Barrels/Day expected to come back online in coming weeks.
KEEP FALLING BABY!! The price of oil is SO important to savvy real estate investors because of the critical markets and global conditions that play a role in its pricing and the fed policy moves that are a result. As geo-political concerns in Iran show a glimmer of hope and Nigeria getting closer to supplying the global markets with an extra 500,000 barrels/day, expect oil to correct! Read my post last Thursday, "Oil Tumbles Below $70/Barrel"; I'm still predicting a correction to low 60's for the price of oil during the next 3-4 weeks or so.
With every drop of oil prices, inflation fears are eased a bit. As inflation fears ease, fed chairman Ben Bernanke can put the brakes on the long interest rate hike campaign that began over 3 years ago. It will only help consumer confidence/wall street once interest rates are done moving up, which in turn should add confidence to the buyer market in housing as well.
Keep tuned into UrbanDigs for follow up on these fundamentals that power the NYC housing market!
~ Oil Tumbles As Iran Hopes Rise
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