Assured Energy Update – March 2021
Energy Buying Support for Independent Hoteliers
If you took action to buy/renegotiate your energy as was advised in November, you could have saved 20-30% on your Energy Bills. Here is the latest update...
Market Conditions / Price Drivers:
- Optimism remains strong surrounding the possibility of an improvement in the COVID-19 situation in the long-term as the vaccine program continues.
- The R number in the UK has continued to decline since the lockdown that was imposed post-Christmas, but hospitals remain under stress.
- Demand levels throughout the country have dropped as milder conditions have set in. However, this week cooler temperatures have returned although this is not expected to persist in the longer term.
- Crude oil has continued to surge and traded closer to $70 per barrel for the most part of last week as optimism remains high surrounding the future. However, recent activity surrounding European countries halting their use of the Oxford/AstraZeneca vaccine has put some downwards pressure on the commodity.
Utility Trading Graphs
The volatility that has been observed over recent weeks is expected to continue as weather forecasts remains unclear. Temperatures are expected to be milder in the UK this week but cooler in Europe which could mean that strength in prices could filter through from the continent to ourselves as the majority of UK supply is fed through from Europe. However, as we progress into March and into April, you would expect warmer weather to erode any risk away into future contracts.
The same risk as outlined before will continue to ensue as we move through the winter as banking on the UK weather warming up as we approach the summer would be folly.
With the passing of multiple vaccines in the UK (phase 2 of the rollout is well under way, with the whole population expected to have received their first dose by Jul 2021) and strong price increases observed in commodities such as carbon and crude oil; it would be wise to look to secure a contract as soon as possible as we seem to be heading towards a very sensitive period that could spike out of control.
This information is provided by our HCC Market partners, Assured Energy, who are part of The Consultus International Group. Any information provided is given on an advisory basis and both HCC and Assured/Consultus are in no way liable for any action taken by the reader with regards to their energy purchasing.
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