get out, get out, there’s an elephant in the room… there’s an elephant in the room… an elepha…
OK, there is no elephant, but if you believe everything you read in the newspapers and via the broadcast media this week you’re probably wondering whether you should start to panic. Oil and gas reached new record highs this week and the experts also reckon that oil will reach between 200 and 250 dollars a barrel in the not too distant future. But you can take comfort that, if you are starting to get nervous, you’re not alone – even some of the experts seem to be feeling the pressure! Even one of the supposed industry experts, advising some of the largest blue chip companies, said this week they think the oil market is out of control and he doesn’t understand why prices are where they are!! I’m not sure how much was politics – on account of their close affiliation to Opec – or that that really doesn’t understand. If you’re a customer though it’s a little worrying, either way!
But, while the rising price of oil and gas were headline news, the fact that coal fell by $20 a tonne this week made a story for just one broadsheet and a handful of newswires. Yes, you read it correctly – coal fell by $20 dollars a tonne this week resulting in wholesale power prices actually dropping a little this week. MPs in the UK also announced an investigation into the role of speculators in the rising oil price. But of the close on 800 stories of rising commodity prices (from a quick search of Google news) these failed to account for more than a handful of hits, combined.
While all of the generation fuel prices are inextricably linked – and electricity prices are still set to rise significantly as businesses renew their contracts between now and the end of the year – having a full command of the facts before making a decision on which contract you sign will help you get the best deal for your business. And, despite the rising commodity costs energy remains one of the top five controllable costs for business.
Now, has anyone seen that elephant??!
