The price of coal and oil increased last month, driving the Bord Gáis Energy Index up five per cent.
October was “another strong month” for energy prices, according to Bord Gáis, with almost all components of the index finishing the month higher.
Oil saw the strongest increase – up 8 per cent – as Opec production cuts drove market tightness and inventory draw downs.
A mild start to the winter season saw gas prices fall by 2 per cent due to lower demand and to more imports reaching Europe. Coal prices continued their rise, finishing the month 5 per cent up on September’s close, while electricity prices finished 2 per cent higher.
Bord Gáis Energy spokesman Darragh Crowley said Opec’s production cuts “have helped to reduce a global oversupply of oil, pushing the oil price over $60 since 2015”.
“It now seems increasingly likely that Opec will extend or possibly even deepen the cuts, due to end in March 2018, at its upcoming meeting in Vienna at the end of November,” he added.
The average wholesale price of electricity was 2 per cent lower in October. This measure typically tracks the cost of imported gas, as it is the most significant cost in the production of electricity.
