As unrest in the Middle East continues to escalate, the price of Brent crude is spiking, causing advances in natural gas in the UK. In the business world this is good news because the net worth of shares on the exchange will rise accordingly. But what does this mean to the average natural gas business consumer?
From the perspective of pure economics, prices will be directly proportionate to supply and demand. It is forecast that in a 24 hour period between February 21 and 22, natural gas demand will peak at 346 million cubic meters. This equates to 18 million more than was in demand on the 18th, or seen in another light, 8 million less than UK pipelines can hold at any given moment.
Since prices fluctuate based on global affairs, this could have devastating repercussions on the average consumer if they aren’t locked into a natural gas contract at low prices. Businesses using natural gas for daily operations could be hard hit if they hadn’t the foresight to find business gas suppliers with competitive pricing.
The market will be more competitive than usual in the foreseeable future which means that natural gas providers will also be pricing their products and services more competitively as well. Businesses are advised to do a bit of price comparison shopping to find a provider with the lowest prices and a contract that will guarantee price stability throughout.
As well, you are advised to contact your provider for tips on cutting back usage to realise even further savings. If you feel that you have been consuming too much gas, have your provider do an inspection and analysis of your business gas lines and usage. Current prices based on natural gas products from the Middle East may not stabilize anytime soon so look for money saving tips until prices level off again with the warmer spring and summer months.