Learn How The Oil Price Will Affect Royalty Owners

Everyone is talking about the increase in the oil price lately. Still, one thing you may not know is that if it keeps going up, you’ll be affected if you’re a royalty owner. If you’re interested in learning more about the situation and how to overcome it, keep reading. Here’s everything you need to know to make a smart decision regarding your royalties.

An Overview Of The Situation

The Economic Environment

When COVID-19 started, many countries elected to lockdown to prevent the spread of the virus; and this was difficult for everyone. Because of that, many people relate the U.S. Dollar’s weakening to the pandemic. But, being honest, you can’t entirely blame it.

As the dollar gets stronger, the price of oil usually goes down because it is worthless compared to the dollar. So, if the economy changes, the prices will go back to what they were, or worse.

The U.S Dollar Index

Our index was around 98 before the pandemic, which didn’t seem to have a significant impact on oil prices. However, currently, the index is at about 95.4.

Inflation: How Bad Is It?

Some areas have seen an increase in prices because of the pandemic. This is because of the supply chain issues that have been caused. However, prices are up even in areas that have not been affected by the pandemic. And even the prices of energy commodities have increased by 48.9% over the past year.

How Can Royalty Owners Be Affected?

It may seem ideal that oil prices go up; you may think that you’re winning and your clients will have to purchase from you at high rates. However, that’s far from reality. In the world we live in, if you’re a business owner, or in this case, a royalty owner, you owe your success to the consumers. And when the prices are too high, they’ll simply stop buying from you.

This can lead to your royalties suffering, and you’ll have to lower the prices, but you won’t be side by side with your competitors. Inflation represents a constant threat to any business, so assuming things are great isn’t the way to go.

Sell Your Mineral Rights To A Trusted Company

If you’re a royalty owner and the oil price is affecting you, we want to let you know that you’re not alone, and there’s another option for you, too: mineral rights buyers. At Blue Flame Minerals, we understand what you might be going through, and we want to help.

We’re a trusted mineral rights company that has been helping royalty owners for more than 10 years. Don’t let this situation stop you, sell your mineral rights to us, and we’ll handle everything else. Our transparent process is easy to understand. We’ll teach you everything, so you’re not oblivious about our deal. You become a partner to us more than a client after we close the sale.


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