Coronavirus and the energy price market

Subscribers to our Market Intelligence monthly bulletin will be only too aware that there are a multitude of factors driving the energy price market.

If you compare business electricity prices from one day to another, they can look very different depending on how bearish or bullish the market is.

On top of all the geopolitical and meteorological factors at play, the coronavirus is an extremely unwelcome addition to an already complex situation.

With the viral outbreak spreading to more countries, the price of oil has dropped markedly as global demand weakens even further due to production cuts in places like China, the source of the COVID-19 disease.

Brent crude, the international standard, dropped 14% for the week to its lowest levels since July 2017, closing Friday at a fraction over $50 a barrel. Cuts in oil production are now being called for by countries such as Saudi Arabia to stabilise demand.

For any energy consultant, such scenarios present challenges, especially around energy procurement, which is why experience is so important in good energy management.

Through years spent in the industry, Energy Management’s energy consultants know the markets inside and out and are across all the news that could impact on our clients’ energy deals.

And this knowledge is complemented by energy management portals such as EM-Powered and its wide-ranging benefits, including the ability to compare business energy consumption over specified periods of time.

That historical data can then be used to help our energy consultants make better-informed decisions on the type of energy procurement right for your business.