Small Business Advice

Oil prices have dropped - and so could your energy prices

Jack Stratten

Why the US-China trade war means it's time to lock in a low-rate energy deal

Global oil prices have dropped recently after the much-hyped US-China trade war. As has often been the case, President Trump's suggestion that he will impose higher tariffs on imports from China sent shockwaves through global markets.

Trade wars like these damage economic growth, and this tends to hit demand for commodities like oil quickly. Meanwhile, a variety of other factors like the drop in the value of the pound have had an abrupt impact on energy prices for businesses and residential customers. As a result, our energy team have noticed a significant drop in wholesale energy prices - which means now is an excellent time to switch energy provider, and lock in low rates.

How Donald Trump impacts your gas bill

Oil prices, and therefore domestic energy prices, are really volatile. They can change drastically on a daily basis, and are often at the mercy of global economic trends and events. That's why major news stories like the US-China trade war or the rapid emergence of shale gas exploitation can have a fast and decisive impact on the prices that appear on a small business' energy bill.

This all becomes especially important if you're currently out of contract. When you're out of contract, you're at the sharp end of whatever market changes occur. Given how tense and unpredictable global economics currently are, it's not a position any small business should be in - particularly any in industries with high energy costs.

The answer is to check your bills carefully. If you're out of contract, or up for renewal within the next 6 months, start weighing up your options. And if you're an XLN customer, it's really worth checking out our energy deals. We can offer you mates rates, and we can lock them in for up to 4 years - which protects you from temperamental market rates. Ultimately, you'll save money - and in these unpredictable times, that is always a bonus.