Supply fears to keep energy costs up

Oil supply anxiety is going to keep energy costs high for the foreseeable future with a strengthening euro the only possible cushion for the Irish consumer against higher petrol, diesel, home heating oil, and gas and electricity prices in the months ahead.

Brent oil prices have risen by almost 240% in euro terms since 2008 and the latest Bord Gáis Energy Index now stands at 151, an increase of 9% on Aug 2011, fuelled by the price of Brent crude oil increasing by more than 25% in euro terms since June and at over €90 a barrel.

Bord Gáis Energy power trader John Heffernan said the price of oil is now similar to the levels seen during the food and fuel crisis of 2008. He said “oil supply anxiety” and the potential for an improvement in the global economy will combine to keep prices high.