Thursday , 29 September 2016
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Oil Falls Below $30 a Barrel for First Time Since 2003

HOUSTON – (Tuesday Jan. 12, 2016)  Oil fell below $30 a barrel on Tuesday – the first time since December of 2003 that it dipped below the $30 mark.

This will have implications for the Houston economy and real estate markets.

West Texas Intermediate was at a high of $107 a barrel in June 2014. But prices have fallen as an oversupply has developed. OPEC in November 2014 declined to cut production and oil prices have fallen sharply since then.

The Houston office market is expected to be the first sector to feel the pinch – occupancy rates have been falling and several buildings are under construction. Many oil companies have dumped office space on to the Houston office market over the last year.

Houston’s Energy Corridor office submarket, which is large, will sustain a setback, although other parts of the city could see softer conditions in office markets.

The single-family residential markets should not see an immediate impact, although if job losses worsen, home sales could be impacted.

Jan. 12, 2016

 

 

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