Is it better to have a fall or a rise in energy prices rise? Market confidence says it does not matter.

Is it better to have a fall or a rise in energy prices rise? Market confidence says it does not matter.

Energy is a necessity for households and business. Fall in energy prices can lead to a decrease in household spendings on energy, thus households can consume more on other goods or services, and improve living standards. However, when the markets are unconfident, a fall in energy price signals a fall in demand for energy, which is considered as a portent of a decline in production in the future. However, a rise in energy prices is not a good thing, either. The oil crisis of the last century well explains how a rise in energy prices could affect our economy in a negative way. From my opinion, market confidence is key to everything. Nothing is absolutely correct. When people are confident, everything becomes positive; oppositely, when people are panic, all news becomes bad news, making people more anxious about their future. In addition, both confidence and panic need continuous news to convince people; otherwise, people will start to doubt their beliefs and the market may move in the opposite way.