quote
menu

Will 6% rise in oil prices impact business energy prices?


We have all been enjoying the benefits of lower oil prices over the past few months. Fuel prices have gone down and business energy prices have fallen. But oil prices rose by nearly 6% in early trading today as a result of air strikes against rebels in Yemen. Will this impact business energy prices?

Saudi Arabia and allied forces carried out the air strikes in Yemen. There are now concerns that hostilities could spread to other areas in the Middle East – disrupting supplies.

Airstrikes began early on Thursday morning and there are worries that Iran could be drawn into the conflict as they are backing the rebel forces.

Yemen itself doesn’t produce very much oil. But the state is next to one of the main transit points for exporting oil by sea. Oil tankers using the Suez Canal also use this sea route.

Experts say the conflict won’t disrupt oil supplies to Asia but shipping lanes to Europe could be affected. While the increase in oil prices is not expected to last it does remind us that the Middle East is volatile and events there can impact the global economy. If the conflict does spread then further increases in oil prices could impact energy prices.

Oil prices are still around $60 a barrel – much lower than prices in June 2014 when it was around $115 a barrel. But electricity and gas prices are one of the highest costs for small businesses and any increase in prices can have a huge impact on business energy bills.

While this price rise shouldn’t impact business energy prices hugely at the moment, it reminds us that world events affect the energy market. Energy prices are some of the lowest they have been for a while. So if your business energy contract is due for renewal then compare prices. You could fix your charges for up to four years meaning any price rises is the meantime won’t impact your business energy bill.

Related Articles

Scottish Power logo

Total Gas & Power

Total Gas & Power is a business energy supplier, wholly owned by Total SA. It has been a leading business ...

Read More
SSE logo

SSE

SSE is one of the UK’s leading business energy suppliers, catering for around 500,000 business with electric...

Read More
Scottish Power Logo

Scottish Power

Scottish Power has been operating since 1901 and is now owned by Iberdola, a Spanish energy firm that is one o...

Read More
Excellent, 9.7 / 10

thank you nicole for your kind help to…

"thank you nicole for your kind help to set up my business electric account fantastic service and your personal touch thank you"

This review was posted by Sam Raju on the 19th of February 2018

Aaron Gallagher recently helped me…

"Aaron Gallagher recently helped me switch the gas and electricity supply for our business. He was extremely helpful and well informed which was great for me as I know nothing in this area! He saved us a small fortune and dealt with all of the switch for us which again was extremely helpful as it wasn't completely straightforward. Thanks again for you help Aaron, it was so appreciated."

This review was posted by Rachel on the 17th of February 2018

A better deal for our Village Hall

"I recently used this company to get a better energy deal for our local village hall. Other companies were quite pushy but Lorraine and Bhavni from SwitchMyBusiness were much more professional. They sent me useful information by email enabling me and the village hall committee to make a decision about which supplier to use. The switch was done by phone and when the energy provider sent the paper work to the wrong address Bhavni sorted it out straight away. I saved over £1000 for the charity."

This review was posted by Irene Winter on the 16th of February 2018

Good Service

"Lorraine was great and very helpful. We negotiated and received a good deal on our supply."

This review was posted by Edwina Nash on the 16th of February 2018

The SME Personal Switcher

"The SME Personal Switcher, Lorraine Carey was really helpful."

This review was posted by Cross Fabrications on the 16th of February 2018