NO-ONE EVER KNOWS FOR SURE what is going to happen. If they did, they would be sunning themselves on their own private island by now. All they can give you is their opinion.

Here’s a few current examples of what might cause energy prices to go up or go down.

Go up	Go down
If oil production is frozen or cut.	If oil producers fail to agree a freeze or cut in supply.
If figures show increased global demand for oil.	If figures show flat or decreased global demand for oil.
We’re approaching Winter, if we have any cold snaps this may cause price spikes.	If Winter is mild, and demand is lower than expected.
If gas storage continues to be a problem, causing supply chain issues.	If gas storage is fixed sooner than anticipated.

 

If we were to pinpoint the major factor, it would be whatever happens to oil, will happen to gas, and in turn will happen to electricity. It’s an old relationship with oil and gas, and one which always seems to be a contributing factor to our energy prices in the UK.

Oil is like any other commodity whereby its price is determined by supply and demand. Whether it’s actual supply and demand, or the perceived future supply and demand is another story…

Unfortunately however, the supply and demand for oil is highly dependent on political factors, not just the physical capability or production or demand figures.

So…if anyone tells you they know what’s going to happen to energy prices, unless they have a crystal ball, it’s more likely they just want you to take action, and aren’t really telling you the truth.