Oil prices will keep on going up because of higher exploration cost, weaker dollar, increased energy needs and tax levies; there is no way around it.
Just about the time we all thought things were not going to get any worse, or at least we all were hoping not, hold on here it comes.¬† The price of oil is on the rise which means you and I are going to see it at the pump and in heating oil.¬† Oil closed Tuesday, 1-5-10 at $81.77, the highest price since October 2008.¬† Heating oil is up and so is gasoline futures.
What does all the mean for you and I?¬† Open your wallets wide.¬† We are now being told that by this weekend gasoline will be at $2.70 and by spring it will be $3.00 or higher.¬† It is almost as if we are all being programmed for the price change to come, well we are.
Couple this with rising interest rates and a dropping dollar.¬† How will all this affect the supposed economic recovery we are hearing about but not seeing?¬†¬†More businesses will feel the pinch due to the rise in fuel and energy cost, utility bills are¬†a certain to rise and the cost of¬†almost everything we touch will go up.
I think the housing market will be dormant for¬†a while longer.¬† Would-be buyers and investors are¬†now going to consider the rise in interest¬†rates and the overall rising cost of everyday living before they consider jumping into the housing market again.¬† This equates to more foreclosures and short sales which equals the value of¬†our properties falling even more.¬† And all of this¬†just when we thought things were getting better.