Odessa Economics: The OEI Continues Climbing
The Odessa (TX) Economic Index (OEI) continued its climb in August 2017, improving to 204 from its July metric of 201.2. The OEI was also up 6.7% from the August 2016 number of 191.2, according to West Texas economist Karr Ingham. Ingham, in his monthly report, noted that monthly home sales were down from the year before, with every other component of the index “reflecting sharp year-over-year growth,” he said.
The reason for the continued increase reflected the growth in energy prices. Ingham said crude oil prices posted year-over-year increases through August thanks, in part, to a decline in July’s prices. The Texas Permian rig count is double what it was at the same time in 2016, with the number of permits issued continuing to increase, as well. However, the economist cautioned, with crude prices averaging approximately $45 per barrel, the rig count “has effectively stalled,” with no new rigs added since June 2017.
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