Large
swings in energy prices account for... Read More»
Large
swings in energy prices were the primary driver for the September spike and October retreat.
Such extreme
swings in energy prices are leaving companies and consumers paralyzed.
Not exact matches
We supply most of the
energy and food consumed at home, providing a cushion against
swings in global commodity
prices.
Shares of
energy companies are set to book their steepest monthly drop
in August since the end of 2015, when the oil
price crash was
in full
swing.
The 0.3 percentage point increase
in headline CPI between December and January largely reflected the 0.25 percentage point higher contribution from
energy prices as they
swung from a decline
in December to an increase
in January.
The government also plays an important role
in encouraging value - added products and renewable
energy initiatives, as well as easing electricity
price swings without imposing arbitrary taxes that disadvantage retailers.
While we believe that current
energy market fundamentals justify an oil
price of $ 50 or above, we also note that productivity gains
in US shale fields have increased the elasticity of supply from these critical
swing producers, a factor that could cap any significant
price appreciation.
We are instead pressing ahead unilaterally with terrible policies: draining the budgets of families and businesses with excessive green taxes; picking losers by giving the most generous subsidies to the most expensive sources of low carbon
energy; and recreating the volatility of the housing market with an emissions trading scheme where the supply of allowances is fixed, so fluctuations
in demand lead to wild
swings in the
price.
Proponents say that today
energy utilities find greater benefit
in a technology that puts the financial risk up front,
in the construction cost, and has little vulnerability to later
swings in the
price of fuel, as natural gas does, or to changes
in emissions regulations, as coal faces.
Therefore, expanding access to
energy choice and free market
energy options is likely to become an important hedge against supply and
price swings in 2017 and beyond.
But are the rapid
swings of
energy prices a risk
in and of themselves?
The world seems like a volatile and risky place with the massive daily
swings in the stock market, rising
energy prices, approaching fiscal cliff, slump
in commodities, ongoing European Union debt crisis and omnipresent geopolitical risks flaming up and pushing already weak U.S. and global economies into recession once again.