How the Saudi-Russian Oil Price War Effects your Energy Prices
On the 8th March 2020, Saudi Arabia initiated an Oil price war against Russia. With the market already starting to crumble due to the worldwide effects of coronavirus, oil prices have again plummeted by almost a third after Russia refused to join Saudi Arabia and OPEC.
Despite Russia’s efforts to cut production and increase the market worth, Saudi Arabia is continuing to max out its production levels at slashed prices. The results of this have seen oil prices drastically fall over as well as greater tensions between the two. Unfortunately, it’s unknown how long the price war for a greater share of the market will run for. However, it’s expected that the biggest shocks to the market will ‘likely come after April 1, when a previously-agreed production cut deal between OPEC and non-OPEC states, including Russia, meant to boost prices, expires’ according to CNBC.
Yesterday, CNBC also reported that as a result of Saudi Arabi’s actions, ‘…futures of international benchmark Brent crude fell below $30 a barrel on Monday for the first time since 2016. That’s a stunning 54% drop year-to-date.’ – Source CNBC.
But how does the Saudi-Russian oil price war affect your business?
The effects which both the coronavirus and the oil price war have had on the market means that prices are significantly lower across the whole energy market. Wholesale power prices are thought to have dropped by up to 13.5% since 5th March 2020 (Source Total Gas & Power), making now the prime time to renew your business energy contracts.
Although UK businesses are facing their own struggles with the corona outbreak, renewing your energy contacts now could offer significant savings on your energy costs. At Tritility we can help your business to secure these lower rates before they begin to rise.
For more information about your business energy contract prices, speak to one of our friendly advisors on 0191 367 3676.