As we all know, currently, that the price of a single barrel of oil decreases totally because of the current economic circumstances even if it shall have a total high price, because it is hard to find and extract it. But the reason behind such decrease is that the developed countries tend to depend on the renewable sources of energy in almost everything; which of course has a great impact on the importance of petroleum. So the question is: does the petroleum will still have such great impact on investment and real estate in particular?
Petroleum is that vital fossil fuel that plays a great role in our daily life. There are lots and lots of several industries that petroleum is considered as a major element in the oil production field; like combustion engines, electricity, tires, pharmaceuticals, dyes, detergents, and many others.
However, there is a list of unexpected products that is made from or contained petroleum as one of its component like; ink, guitar strings, hair coloring, lipstick, aspirin, deodorant, heart valves, cortisone, putty, and others.
So, from the above, one can assure that petroleum is an essential element all over the world and in the Middle East. It is the core factor that determines the prices of everything, the exchange rate, the value of a certain currency, material’s prices, and of course the prices of properties (real estate).
Real Estate investment is like any other investments that can be affected by the petroleum. Simply, because as mentioned above petroleum affects the value of the currency and money is the core in any investment and in property’s investment in particular.
Crude oil and petroleum in particular play and has a great role in determining the prices of everything and the rate and the amount of investment in a particular field. That’s why, investing and buying a property affected easily by the stability of the petroleum.