How Forecasts for Electricity Prices in 2010 Will Affect You - By: Kim d

Staying on top of the energy markets is an important strategy if you want to avoid high electricity prices. Market forecasts from places like the Energy Information Administration (EIA) can prepare you for tough times ahead or alert you to cheaper electricity prices on the horizon. Either way, watching out for energy predictions will keep you prepared and forewarned in shifts on the energy market to help you negotiate the best deal for your utilities.

A look at the latest EIA short-term energy outlook presents some interesting data. The EIA expects electricity prices to go down in early 2010, with prices dropping by about 2 per cent from the 2009 average. This will be the first decline in average electricity prices in seven years, as the costs tied up with the use of fossil fuels are expected to decrease next year.

Global oil prices have lingered around $70 per barrel this year, with prices fluctuating in August between $67 and $74. Prices should remain fairly constant as the world market has to offset a weak current demand against economic recovery in the UK and US and therefore higher consumption levels.

The consumption of oil around the world dropped by 3 million barrels a day in the second quarter of 2009. As oil production remained steady this year, the decrease in demand has meant that companies have been stockpiling their fuel supplies. A high level of stock and reduced demand will ensure lower electricity prices in 2010, as the EIA predicts marginal growth in demand from now until the end of the year.

Throughout 2010, the EIA expects growth of oil consumption to continue as economic recovery is hastened. With this in mind, global oil consumption should increase by approximately 1 million barrels per day leading to increasing prices before the end of 2010.

If the forecasts are correct, then now is an ideal time to be shopping around for the best electricity prices on the market. Price comparison sites can help you find the cheapest prices for gas and electricity. Grab a good deal now, before the higher prices settle in later in 2010.

About the Author

Kim has done a lot of research into price comparisons for customers and how to get the best deal on many household products including Gas and Electricity. She enjoys writing articles to share this knowledge.

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