Oil Prices Affecting Royalty Checks
We have started to see oil prices affecting royalty checks across the board for many mineral owners. Many mineral owners are reported seeing their royalty checks drop in value around the first of the year. Oil prices were testing their lowest point around $42/barrel. Over the last few months they have since recovered to around $60 and royalty checks were starting to go back up in value.
Unfortunately the last week has seen the price of oil plummet back down to just over $50. This means more pain is on the horizon for mineral owners. Just as royalty checks were starting to go up we are going to see them start dropping again due to lower oil prices.
Deciding whether to Sell Oil and Gas Royalties
With oil prices affecting royalty checks we are seeing a number of mineral owners who are considering whether to sell. Many mineral owner rely on the income each month and when it fluctuates that can make life more difficult to predict. When you sell oil and gas royalties you have an opportunity to get a lump sum payment for your oil and gas royalties. This helps you avoid the hassle of having checks that are $3,000 on month and just $1,000 a few months later.
If you want to sell royalties for the highest possible value, we can help. At US Mineral Exchange we get your property in front of our large network of buyers. These buyers are industry professionals who pay top dollar for properties and you’ll be able to see a number of bids. There’s no obligation to accept any offer and no cost to list the property. If you’re ready to get started, please fill out the free consultation form below.
Where oil goes from here
While no one can predict the future, the consensus in the industry is that oil prices are going to continue to stay low for a considerable period of time. With oil prices affecting royalty checks and causing a reduction income it’s unlikely that this trend will change anytime in the near future. The price of oil has a number of issues weighing on it right now including the economic crises in Greece, weakness in China, and Iran potentially striking a deal to flood the market with more oil.
All of these factors plus the fact that we are becoming better at extracting oil will continue to put downward pressure on oil price.
Contact US Mineral Exchange:
If you have questions about your mineral rights, we’re here to help! We speak with mineral owners every day and we look forward to hearing from you. Please don’t hesitate to fill out the form below with any questions and our friendly team will respond quickly.
