Expect the news to be full of the colour red this week, but that?s not just from the various football matches that I am subjected to of an evening, there is far more interesting things to watch (although I?m sure football fans would disagree) on the news. That is what is happening to the Chinese stock markets and what does this mean for the price of energy?

Monday, which has now been dubbed ?Black Monday? where Chinese stocks plummeted in value and sent shock waves across the world?s stock markets. The Shanghai Composite, China's main stock exchange, fell 7.6% on Tuesday - after losing 8.5% on Monday. After decades of rapid growth, China is slowing down and investors globally are worried that firms and countries which rely on high demand from China will be affected. China is the world?s second largest economy and it?s the second largest importer of both good and commercial services.

Yesterday there was hopes that with China lowering interest rates by 0.25% that would help steady markets, but markets are still opening down this morning, despite the Dow Jones opening with a rise of 400 points. There has been no recovering the over 40% loss in stock value that has happened in the Shanghai Composite since June.

The prices of many commodities have been affected and most notably the price of crude oil has been affected. A slow down in China will hit the demand for oil which will result in lower oil prices. All these factors plus Iran?s recent nuclear deal with the US means we are currently experiencing a six year low of the price of a barrel of oil at $39, which has now slightly recovered.

The knock on effect of this is lower energy prices right out to winter 2017, which is great news for those looking to lock out future energy contracts. Those with flexible energy contracts those who have quite high hedges can afford to wait and see what happens and how low the prices go. Those with high exposure can look to act now to minimise the risk going forward.