Energy prices continue to be the one piece of good news in the American economy, as a combination of low demand, tight credit and investor wariness kept prices down across the board. The anticipated October rise has been put on hold…indeed, it feels like almost everything has been put on hold…as everyone waits, and hopes, for the credit markets to respond positively to the government’s rescue efforts.
Meanwhile, energy prices sit there, an opportunity for anyone positioned to take advantage.
How much of an opportunity? It’s notable that several large providers have begun curtailing long-term (4 year +) contracts due to the difficulty in predicting price trends beyond a 36-month horizon. Whether we will see a NYMEX price under $7.00 again, given so many changing factors, is anyone’s guess. A lot of people think we won’t.
We were calling the energy market a “wild ride” even before the financial meltdown changed the story and made things even wilder. This is a good time to understand ways you can hedge your energy bets. At Cost Conatinment Intl., that’s our core business. There is a strategy to deal with even the most dire financial situation, and we can show it to you.