Oil prices may begin to bottom out

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Some analysts have suggested that oil prices may begin to bottom out as prices fall to near the production costs of US shale oil, which has become the fastest growing area of non-OPEC supply over recent years. However, further falls in oil could make US fields unprofitable and could stabilise the global market from its current slide as US oil fields close and supply decreases.

The successful restart of three nuclear reactors over December, which were taken offline in August, has increased market confidence that a fourth reactor at Heysham will also return successfully. Higher nuclear production power should improve supply margins for the rest of winter and could reduce power prices.

Catalyst Commercial Services’ independent approach enables clients to manage their exposure to energy price risk, while at the same time benefiting from a first class service from a range of major and independent suppliers.

via Catalyst Business Energy Market Brief January 2015.

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