Canada Markets closed

July home prices slow at fastest rate on record, oil prices rise as Hurricane Ian intensifies

Yahoo Finance Live anchors Dave Briggs and Rachelle Akuffo break down the S&P Case-Shiller Index for the month of July and look at how oil markets are faring amid the incoming Hurricane Ian.

Video Transcript

DAVE BRIGGS: Seana, let's get you up to speed now on housing, which really right now, it depends upon your perspective. Some new numbers out from CoreLogic show US home prices in July cooled at their fastest pace in the history of the Case-Shiller Index. Nationally, prices are higher than a year ago and rose 15.8% from July to August.

That's a lot, but well below the 18-point increase the previous month. So again, prices are still growing. They're just growing slower than before. Outliers here include Tampa and Miami with stunning increases. Look at that, 31.8% and 31.7% respectively year over year. That is dramatic. And overall, our dire thoughts about the economy brightened a bit with consumer confidence actually improving for a second straight month, another surprise to you.

The Conference Board reporting the baseline index rose to 108 from 103 in August. We'll get University of Michigan numbers at the end of the month. And Rachelle, as we toss it back to you, we will hear from a Miami broker later in the show to get a better sense of what in the world is going on down there, with prices up more than 30%.

RACHELLE AKUFFO: That's right. Now, before we get to that, though, we're going to get you up to speed with what's happening with Hurricane Ian and its impact on oil and gas prices. We did see oil bouncing off a nine-month low. You have WTI and crude both up there. WTI up about 2%, Brent crude up about 2 and 1/2% there. Also taking a look at natural gas, that's down fractionally. As we can see there, that's down about 2.9%. As we look at RBOB as well, that's actually up almost 5% there, for about 4 and 1/2%.

Now, late Monday, of course, we heard from BP and Chevron. They actually cut production at offshore oil platforms in the Gulf of Mexico and evacuated personnel due to the storm. That affects about 485,000 barrels per day, or less than about 5% of US oil production. But of course, Florida bracing for the worst of the hurricane.

Now, it's not a major producer or refiner, which is why RBC Capital Markets analyst Michael Tran says this is not going to be a meaningful event for the global oil market. But of course, you have the domino effect of delayed deliveries due to evacuations, flooding, and wind damage, all of those weighing on oil markets that were already under pressure amid broader market losses that we're seeing across the board.