The UK is an “oil society” and high prices are here to stay, according to a senior energy market analyst at Inenco. This follows an increase in oil demand around the globe over recent years.
Tom Pering told ELN the energy market is very volatile and we can expect oil prices to rise in the near future. He said: “In the long term – 2020 and 2030 – we will always get a price rise and can expect to see a rise of 5-10% on average… High prices are here to stay unless we see some significant changes.”
Despite recent oil prices hitting $100 a barrel, consumers are tolerating the higher prices. Infact, many people are spending more money on petrol and sacrificing other disposable income. Mr Pering said: “Everyday people are paying more towards travelling to work and have less to spend on other expenditures.”
A recent report from uSwitch also suggested one in three households may not be able to pay for energy bills in three years time.