Price of OIL to fall?

This will be our fourth winter that we have bought Community OIl…we’ve survived! We’ve had extreme cold, extreme supply issues, extreme prices and, ironically, extreme mildness thrown at us! We have had a recession, a minor recovery and more recession too. We’ve had an Arab Spring, all manner of other geopolitical influences and a seemingly doomed Euro meddling with the price of the raw material that affects us daily…and still we’ve survived. So what next?

On the world stage we have one vast issue heading our way. Once again things will happen that we have absolutely zero influence over and once again those that use Rural Energy, in particular, will be affected more than any other because of the immediacy of price changes. I say once again that whilst we can do nothing to control what goes on at that end of the deal we can do many things that hugely affect our end of the deal!

Never before have we headed into Autumn with prices so horribly high – for either Brent Crude OIL or, therefore, our heating OIL. Having been as high as $125 per barrel in the spring the price of Brent Crude then trundled down constantly for three months until it hit a 22 month low of $88. Of course reflected in prices of heating OIL. Since that last week in June the complete opposite has happened and the gains have been almost constant. This week OIL hit a four month high of $117 because The Federal Reserve rode to the rescue of the US economy (and Obama?) So what next? I would say that having had Fed intervention to stimulate their economy would make Americans more inclined to re-elect a sitting President. Except for one thing. If that means OIL prices go up because a strengthening economy will, in theory, create need for more OIL and reduce supply, then the chances are their “gasoline” will also go up and we all know that our “special cousins” are wedded to their cars. He has done it before and I suggest you watch to see if he does it again. Who is he? Obama. He stood before an audience – about 18 months ago – and talked about the stranglehold high OIL prices have on the green shoots of economic growth and within hours the IEA (International Energy Agency) opened reserves, surplus flowed into the market and crude OIL plummeted by five, six and seven dollars in two days. What chance, even though the higher prices are a result of the stimulus that gives him his best chance of re-election, he will do that again in the next two weeks?

Watch for a very subtle change in vocabulary and suddenly something will happen – I say within two weeks we’ll have a correction in the price of crude OIL and Brent Crude will fall back towards $110.  That will be when to buy your OIL for the rest of the winter.

What else can you do to bring your energy costs down? Well we are constantly trying to build on what we have started, make Rural Energy fairer and bring more and more people within more and more communities into a group that can really create change for rural areas. So what about this: Rural Dual Fuel. We are talking to energy companies to give us a unique ELECTRICITY deal for our members. We are not there yet, but if you go to: www.ruraldualfuel.co.uk and use the Special Code: OBAMA1 when prompted (so we know how you found us) and register your interest (which obligates you to nothing), then we will be able to send you updates on the progress of our deal.

That is our next exciting development, but look out as we are working on some more.

Keep warm!