The housing market remains precarious, and high oil prices are unlikely to stabilize it. Indeed, the more homeowners are forced to pay to heat their homes this winter, the less likely they are to have the extra savings needed to move into a new one. Hugh Collins at our sister site DailyFinance.com explains why the oil is hitting highs not seen since 2008. Click to the jump to read more
Oil rose to the highest price in more than two years as cold weather in the U.S. and Europe stoked demand.
U.S crude prices for January rose as high as $90.46 a barrel, the highest since Oct. 2008, Reuters reported.
Temperatures in northwest Europe are expected to stay below seasonal norms for the next 10 days, raising demand for heating oil and prompting utilities to use their oil-fired power plants. In the U.S., heating demand is expected to be 16.3% above normal in the week to Dec. 11, according to the U.S. National Weather Service. The market is reacting to the very cold weather in Europe and it's expecting to see an impact on heating oil," said Roy Jordan, oil analyst at Facts Global Energy. "It's a knee-jerk reaction."
A weakening U.S. dollar further boosted prices. The dollar index declined by 0.3%. Read more at DailyFinance.com.