Unrest in Middle East causes concerns about oil. Homeowners would be advised to take action.

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First Tunisia.  Now Egypt.  Many are concerned about instability moving to other areas.  Unrest in the Middle East is adding uncertainty in oil markets–and higher prices.  Prices jumped a few percent on Friday.  Talk radio this morning had a couple predictions of oil moving as high as $150/barrel in the next couple of months.  That seems like pure speculation to me, but I don’t think it’s crazy to expect oil prices to climb.  They nosed up to near $100/barrel already today in London.

This is certain to increase talks of energy policy in Washington.  I got “news” for homeowners, though.  We’re not going to drill ourselves out of this one.  That may help, but by itself, it’s not a solution.  And if you’re a homeowner who heats with fuel oil (like many in the Northeast or Upper Midwest in particular), a decision to start drilling in every possible location in the U.S. probably doesn’t help you for at least a couple of years if at all.  It won’t take a lot of perturbation in the market to see fuel oil price to spike to $4-5/gallon.  And that could devastate homeowners, with monthly energy bill perhaps even exceeding mortgage payments. 

I may sound like a broken record on this, but your household’s security is tied to energy-efficiency.  Collectively,  so is our national security.  You should take a hard look at making improvements right now.  Don’t panic.   But take the right steps, make smart investments in air-sealing, insulation, furnace, boilers, etc. and protect yourself  and your family from instability in the world markets. 

Thanks,
Mike

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One Response to “Unrest in Middle East causes concerns about oil. Homeowners would be advised to take action.”

  1. Mike Rogers Says:

    And the U.S. benchmark today closed at $92.19, up 3.2%,

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