LUBBOCK, Texas, June 25, 2012 /PRNewswire/ -- Oil prices fell nearly $3 last Thursday, taking it down to an eight-month low and breaking past the $80 comfort zone. The fall came amid an unexpected rise in crude stockpiles and supplies in America, and hit home in several U.S. oil towns.
Projections in the oil industry are what have drawn investors, such as LubbockInvest CEO Blake Templeton, to oil towns. He and his partner, Brant Greathouse, are getting ready to launch Stonebridge Estates, a 185-Lot luxury Mobile Home Park in Midland, Texas, to help solve the housing shortage there.
"The price fluctuations don't scare me, but it scares people directly invested in the oil industry and creates a pessimistic atmosphere," Templeton said.
Templeton predicts that Middle Eastern oil will be increasingly cut off as the U.S. continues to open its own reserves that have been sitting stagnant, such as Eagle Ford Shell that opened in 2011 in South Texas.
Until Middle Eastern oil production is diminished, barrel prices are expected to fluctuate back and forth as a result of the abundance of supply.
"The point is not that oil will bust any time soon. The point is, you can't place all your eggs in investments that are driven by government action or lack thereof," Templeton said.
Templeton suggests that investing in industries that are indirectly related to the oil boom and other industries that run counter to the national economy are wise places to diversify.
Interestingly, U.S. Crude supplies increased by 2.9 million barrels to 387.3 million barrels, which according to the Energy Information Administration's weekly report, is more than six percent above last year's levels. In addition, analysts at McGraw-Hill's Energy Department predicted a decrease of 600,000 barrels.
U.S. crude oil stocks have reached their highest levels in nearly 22 years.
Volatility in the stock market initiated a surge in crude oil investing. Now, with the fluctuations in the oil industry, diversifying into other industries has become a logical consideration, especially for towns that are heavily dependent on the success of oil.
LubbockInvest is a real estate investment firm based in Lubbock, TX. Founded in 2006, the company creates wealth for individuals, backed by real estate. Investment products include turn-key cash flowing rentals and private lending transactions at fixed, high-yield rate of returns, and focuses on sub-markets of real estate.
CONTACT: Romeyo Kirven, LubbockInvest, (806) 686-4259 or [email protected]
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SOURCE LubbockInvest, LLC