Energy prices stay elevated
Analysts warn energy and fuel costs remain well above pre‑crisis levels and geopolitical risk — especially Middle East tensions — keeps the upside risk for utility and fuel prices high, pressuring contractor operating costs and homeowner interest in efficiency upgrades. The coverage calls for planning for persistent price volatility rather than expecting quick relief. (economist.com) (commonslibrary.parliament.uk)
Brent crude has risen to roughly $112 a barrel, about 54% higher than before the recent hostilities began. (economist.com) The IEA reports Gulf producers have cut total oil output by at least 10 million barrels per day and says flows through the Strait of Hormuz fell from roughly 20 mb/d to a trickle, creating the largest supply disruption in the oil market’s history. (iea.blob.core.windows.net) The U.S. EIA recorded Brent settling at about $94 per barrel on March 9—roughly a 50% jump from the start of 2026—and its March Short‑Term Energy Outlook projects the Henry Hub natural gas price to average about $3.80/MMBtu in 2026. (eia.gov) The Associated General Contractors’ analysis shows the producer price index for materials and services used in non‑residential construction rose 0.1% month‑over‑month and 3.1% year‑over‑year, with the AGC warning metals and fuel cost increases are adding pressure to project budgets. (agc.org) Industry trackers report construction input prices jumping at double‑digit annualized rates in early 2026, driven largely by energy and metals price spikes that are also lengthening lead times and increasing supplier uncertainty. (constructionowners.com) Market and survey data show demand signals for home efficiency work are rising—Carrier finds over half of U.S. homeowners plan 2026 home improvements with heating/cooling upgrades among top projects, and PNNL research shows Midwestern homeowners are primarily motivated by cost savings—yet other surveys report a sizable share of homeowners delaying upgrades because of upfront costs. (carrier.com) UK Parliamentary research notes the domestic energy price cap was set to fall in April 2026 but that the cap for July–September 2026 will be re‑set on or before 27 May 2026, underscoring continuing policy uncertainty that feeds wholesale‑to‑retail price transmission. (commonslibrary.parliament.uk)
