After a slight upward blip in late October, the wholesale markets for gas and electricity have fallen, whilst oil has risen to a fraction below $80 per barrel and has held steady for the last month.

The increase in oil prices can be directly related to the reports of a sharp fall in US stockpiles earlier this month which were around one quarter of expected levels - 1.2 million barrels as opposed to 4.4 million.  Although still a long way below the $147 per barrel of July 2008, any increase is unwelcome to end users.

Fortunately these increases have not impacted upon electricity and gas prices with levels remaining similar to late 2007. The steady behaviour of gas and electricity can be partially accredited to an oversupply of gas and the news of ten new Government approved sites across the UK upon which new nuclear plants can be built to bolster supply from 2018 onwards.

While the increase in oil prices proves that stock levels can have direct effects on markets, and all markets worldwide are intrinsically linked, there are so many other factors to consider in predicting energy markets that it can never be an exact science. With access to many streams of information, we are in a better position than most to make educated decisions on when, where and which supplies to tender and to whom.  As well as reviewing markets, we’re constantly updating our tender lists.  It is not always about best price - we also endeavour to deliver the whole package and make the provision and billing of utility supplies as pain-free as possible.