Rise in coal and oil prices drives up Bord Gáis En­ergy In­dex

The Irish Times - Business - - BUSINESS NEWS - COLIN GLEE­SON

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.

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