Crude Realities of a Hot Commodity
Lily-Hayes Kaufman (OI)*,Contributing Writer
Issue date: 11/10/08 Section: Viewpoints
The prospect of a recession may send market players fleeing like a bad song scatters a packed dance floor.
Not to be a glass is half empty kind of gal, but unfortunately, not all American consumers will be able to take advantage of dropping fuel prices. In fact, the dropping oil and gas prices will have an unpleasant downside for some homeowners in the North East this winter.
When oil continued to surge through the summer of '08, consumers in the North East panicked after last year's record heat costs. Many chose to lock into fixed rate heating oil contracts to protect themselves ahead of the threat of another price spike in the Winter of '09.
Since Peaking, Heating Oil has given up over 50%. However, consumers who entered into fixed-rate contracts near the highs will be locked into high prices to heat their homes regardless of easing heating oil price activity in the market.
But don't cross oil off your dance card just yet. Though the Recessionista may have replaced the Fashionista on the dance floor, in this volatile market, the potential for oil to make an encore performance seems quite plausible.
Not to be a glass is half empty kind of gal, but unfortunately, not all American consumers will be able to take advantage of dropping fuel prices. In fact, the dropping oil and gas prices will have an unpleasant downside for some homeowners in the North East this winter.
When oil continued to surge through the summer of '08, consumers in the North East panicked after last year's record heat costs. Many chose to lock into fixed rate heating oil contracts to protect themselves ahead of the threat of another price spike in the Winter of '09.
Since Peaking, Heating Oil has given up over 50%. However, consumers who entered into fixed-rate contracts near the highs will be locked into high prices to heat their homes regardless of easing heating oil price activity in the market.
But don't cross oil off your dance card just yet. Though the Recessionista may have replaced the Fashionista on the dance floor, in this volatile market, the potential for oil to make an encore performance seems quite plausible.
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