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Oil prices on the rise, time to act now?

Gas

Renown oil magnate Boone Pickens predicted a sharp rise for oil prices after this week.

 Oil barrels

Pickens stated that oil prices have hit “rock bottom” this week at just above $26 a barrel and will begin to climb again. The price for a barrel of oil is expected to at least double in the next 12 months.

In his statement Pickens said that “Whether it’s $50 or $70 by the end of 2016 will largely be determined by the global economy.”

Oil companies are building inventories carefully and only keeping 1 to 1.5 million barrels a day surplus, as a comparison to the height of the 80’s boom where the surplus was kept at around 15 million barrels a day.

The US oil benchmark company West Texas Intermediate crude (WTI) was still feeling the pressure with their price dipping by 3% to just under $33 a barrel. The lowest point for WTI was $26.55 a barrel on the 20th of January.

 

What does this mean for you, the end consumer?

In recent times utility prices have been very low driven by the low price of crude oil. However, now that the price per barrel is rising again, and likely to continue, the price of utilities will increase in line with this rise.

 

Now is the time to act!

If your utility contract is coming to an end in the next 180 days, you can lock in a new contract at today’s prices that will be fixed for the next 12, 18, 24 or even 36 months. By locking in this price your energy bill will be fixed for the term of your contract, allowing you to plan your budget accordingly.

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