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


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. 


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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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