Wholesale gas price down, crude oil up, in mixed signal for Irish households and businesses 

Easing tensions over Ukraine involving Russia, the US and European countries has led to energy traders bidding down the price for gas supplies.

Wholesale gas prices in Europe slid but global crude oil prices spiked higher, delivering mixed news for the prospects of Irish household and business bills later this winter. 

Easing tensions over Ukraine involving Russia, the US and European countries has led to energy traders bidding down the price for gas supplies. They had feared that Russia would use its leverage as a major supplier to much of northern Europe to turn down the amount it let flow from its pipelines this winter to gain political advantage in the Ukraine crisis.                        

The so-called TTF Dutch futures contract fell 1.5% on Tuesday to €105 per kilowatt per hour for delivery in January, marking the fifth session of declines. The recent falls may ease some fears that the wholesale price hikes would fuel more household energy price hikes should further market increases be passed on in the form of higher utility bills in the early months of next year.

Wholesale gas prices are, however, more than double their levels of early October when strains over Ukraine and a shortage of all types of energy across Europe helped to pile on the pressure for Irish households. 

Amid the shortages, gas has increasingly been used to generate electricity across Europe this winter.

The news was less promising for Irish households and businesses as the price of Brent crude oil threatened to touch $80 a barrel in the latest session. 

The gains were marked up as investor fears eased on the potential for Omicron to disrupt world economies again. 

That means investors believe that governments around the world will unlikely sanction more major restrictions.