In the northeast from a consumer stand point at this time of the year, we wonder about oil prices for it heats our homes and cost of driving to work. According to a report in Bloomberg News by Jessica Summers, Alex Longley and Christopher Sell the direction of oil prices will be decided in Texas.

Analysts are expecting oil to average about $60 a barrel currently the price is in the $64 range, for us consumers it should be around where the price is now. The US production is where analysts have a differing view, some believe although the Energy Information Administration says US crude will surpass 10 millions barrels a day, the growth rate in the Bakken basin in North Dakota area and the Permian Basin in Texas may slow down. If there is a slowdown then more oil from outside the US will be needed and prices will move higher. If production remains good, then prices will be relatively stable.

The other consideration is demand, while more and more energy projects are moving to renewables, there is still a long way to go and the country’s need for oil is ongoing.

Linking to dividend paying stocks, in all commodity based stocks the price of the commodity will do more than any management can do. If the price is low, then hanging on to higher prices is the order of the day. If the price moves up, then a variety of options are available including easily paying dividends. If you own commodity priced companies, part of your homework is to see if the price is stable or moving in one direction or another.

There are more questions than answers, till the next time – to raising questions.