quote
menu

What do rising oil prices mean for small businesses?


Oil prices have been rising since mid-March but are still lower than in June last year. What does this mean for small business energy bills?

There was a 6% increase in oil prices in March as traders worried that hostilities in Yemen would disrupt supplies. So far this hasn’t been the case but prices have again increased and the cost of Brent crude oil has gone up by about $9 a barrel in the last six weeks to around $65.

The continuing conflict in Yemen is still playing a part in these price rises. But it’s unlikely they will go back up to the previous levels any time soon.

How are oil prices linked to gas and electricity prices?

Changes in oil prices often dictate changes in gas prices – but why?

Gas is a by-product of oil exploration and production. Over the last few years a number of different sources of gas have emerged including shale gas. But gas prices are still strongly linked to oil prices because of overlap in production and exploration.

Gas prices are linked to electricity prices because gas is used to generate electricity. This means oil prices can have an impact on both business electricity and gas costs.

But business gas and electricity prices haven’t fallen as much as had been hoped as a result of lower oil prices – partly due to government levies on bills.

Now, as economies around the world recover, oil consumption is expected to increase. And when consumption goes up prices can increase. While there’s a glut of oil at the moment, prices aren’t likely to increase rapidly in the short term. But they will start to go up.

What does this mean for small businesses?

If your business energy contract is due for renewal now or over the next few months it’s important to make the most of these lower energy prices.

Use a compare and switch site to find a better deal. Fix your contract and benefit from these lower prices for the next two, three or even four years. Knowing exactly how much your energy will cost will allow you to make better long term decisions.

SwitchMyBusiness.com offers a straightforward solution, cutting bills by up to 70%, with exclusive supplier rates. Thousands of businesses have already saved an average of £747 per switched meter with a call that takes less than five minutes. For an impartial expert option, fill in the form at the top right of this page or call 0800 411 8830

Related Articles

money image

How to make a million

Whether you’re happy keeping your business small but perfectly formed or have your sights set on the sta...

Read More
lightbulb

Energy News 08/09/2017

What’s big in the world of energy this week?  Hacking group Dragonfly has infiltrated European and US e...

Read More
icebergs - iceland

Iceland’s Renewable Energy Story

Here at Switch My Business we are big fans of renewable energy. Many of our suppliers are actively transitioni...

Read More
Excellent, 9.8 / 10

Great customer service

"Did not actually use on this occasion (hence four stars) but very impressed with the customer service given by a gentleman called Mark Weeks who was very knowledgeable. Thank you."

This review was posted by Fiona Howard on the 23rd of October 2017

Excellent

"Excellent, many thanks"

This review was posted by C nash on the 23rd of October 2017

Excellent service

"Excellent service, and fantastic customer service and support from Ian Smith."

This review was posted by Gavin on the 23rd of October 2017

i was just looking for comparison …

"i was just looking for comparison quotations on your web site when Bhavni rang to offer assistance. i am so pleased she did. very professional and extremely helpful and knowledgable. Bhavni even enquired further and got a better deal than was showing. thank you"

This review was posted by Merlin66 on the 23rd of October 2017

I couldn't be more satisfied!

"I couldn't be more satisfied with the service provided by Bhavni on behalf of Switchmybusiness.com. Her professional, helpful and friendly service was truly exceptional."

This review was posted by Gosia Stelmaszczyk on the 20th of October 2017