Oil Prices Up $8 This Morning To $138. Why?

SPIKE IN GAS PRICES OVER $5 will have an impact on real estate prices.

Why is crude oil price spiking?  Fox Business New is reporting crude prices have climbed $8 a barrel to $137 in the last half hour.  No one in the G-7 or media seems to know why.

Here are several possibilities: most of them relate to Iran.

1. Iran is hording oil by filling crude tankers and anchoring them in the Persian Gulf.  There is now over 21 million barrels floating in the Gulf.  Iran is driving the price up.

2. There is a possibility of air strikes against Iran by Israel (with US approval).  Iranian oil would then be off the market.

3. The radicals within OPEC, including Iran and Venezuela, are deliberately limiting production and buying futures to drive up the price.

4. Foreign hedge fund and oil speculators driving up the price based on future anticipated demand.

All of the above.

Whatever the reason why, should gas prices climb to over $5 per gallon there will be major effects on the economy, food prices, transportation prices, durable goods, everything would cost more, and real estate prices would generally decline.  There is also the possibility of world wide recession.

Now Americans should know the US economy for the first time in history is in the hands of foreign entities that both fund the national debt (50% is owned by foreigners) and what we need for the economy (oil and imports).

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