CONSUMERS will be pleased that global currency movements continue to push down energy prices, according to the latest Bord Gáis energy index.
This Irish-specific index, designed to measure the prices in the wholesale energy markets, fell by 2% in August to 108, the first time the index has dropped out of the 110-112 range since April. The index is made up of the key energy commodities of oil, gas, coal and electricity.
The index notes that the price of oil fell from $78 a barrel to $74 in August, while the price of natural gas fell by 7% due to reduced storage injections in Britain.
The price of electricity fell by 2% last month. However, there were signs of growth in evening demand as the summer ends.
Prices in the coal market rose at first in August to $93 a tonne due to higher power prices in Germany. But high stockpile levels in Europe and decreased demand from China helped prices ease. Coal closed at $91 a tonne by the end of the month.
Bord Gáis energy trading analyst Michael Kelleher said: “Global macro-economic data continues to be the biggest driver of the movements in the Bord Gáis energy index as a result of its effects on both currency and commodity prices.”
Mr Kelleher said the futures markets will continue to price in a moderate rise in commodity prices in the coming months.
However: “The pace of economic recovery in developed economies in Europe and the Americas coupled with a confirmation of the rate of growth in developing economies could have a major impact on energy prices in the coming months, particularly oil and coal.”
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