Will the Hamas-Israel Conflict Affect Energy Prices?
How the Hamas-Israel Conflict Impacts the Energy Market
The Hamas-Israel conflict has caused concern around the effect on the energy market. What is the connection between the Middle East and your energy bill? What should you do to safeguard yourself against price hikes? Keep reading to find out more.
The link between Middle Eastern conflict and energy prices
At the outbreak of the conflict in October, economists rushed to try and predict the course of the war. The reason for this is the sensitivity of the cost of crude oil around Middle Eastern events. The knock-on effect of this is inflation and unemployment – or even recession.
By disrupting the regular supply of oil from these regions, we have seen volatility in global energy markets.
Rising gas prices in Europe since the start of the Hamas-Israel conflict .
Uncertainty in the global outlook has led to a rise in European gas prices since the start of the Gaza conflict. Chevron Corp stopped production at its Tamar natural gas field near Israel’s northern coastline, which has fuelled market uncertainty. If this shutdown goes on, supply to Egypt (who, in turn, supplies Europe) may be limited. This has exacerbated concerns about sufficiency of supply in the build-up to winter.
To add to the uncertainty, the Balticonnector gas pipeline has been damaged, resulting in a temporary closure of the pipeline.
Even amid signs of stabilisation, gas prices are more than 30% higher than since before the attack on 7 October. In Brussels, a proposal to extend the gas price cap that has been in force since February has been put on the table for consideration. This is in response to concerns over the conflict, as well as potential sabotage of the Balticonnector pipeline, and feared gas price hikes as we go into winter.
Take the smartest approach to your business energy
Gas supplies are at 90% capacity and, with a mild European winter predicted, there is no cause for panic around gas supplies. However, as the conflict in Gaza continues and intensifies, it is reasonable to expect gas prices to remain high in response to these events. The response of energy prices to these events could mean inflationary pressures persist through winter.
Secure rates with a fixed contract
Consistency is key when you’re trying to run a business, which makes fluctuating operational costs a headache and a worry. Work with our professional energy consultants to negotiate the best rates for business electricity and gas contracts. We also work to secure the contract terms that are a match for your business.
Hedge against uncertainty by working with Smarter Business
Our energy experts are the best in the business if you’re looking for advice on your energy contracts and spend. With professional insight into energy and gas, we have a finger on the pulse when it comes to the markets. From there, we use our supplier relationships to find the best options that are a match for your business’s unique needs.
Getting the best deal is the first step. We work with you to optimise your energy management, which helps you to have more control when it comes to consumption and spend.
Contact us for a free quote and to discuss your needs.