Energy index holds firm as investors wait on political events
Bord Gais index will continue to monitor Opec’s commitment to cut oil production
“Investors are assessing whether Opec and other big producers such as Russia are delivering on last year’s deal to cut output.” Photograph: Sergei Karpukhin/Reuters
The Bord Gáis Energy Index held firm in February over the previous month, but remains up 50 per cent year-on-year.
The index shows that in February the price of oil was steady, while there was a 2 per cent fall in gas prices and a 7 per cent fall in coal prices.
BGE said the lack of price movement shows that investors are “undecided over the direction that prices will take as they assess whether Opec and other big producers such as Russia are delivering on last year’s deal to cut output”.
The index’s authors also speculated that investors are becoming more concerned about the possibility of Marine Le Pen winning the French presidential election, while they have accepted a US rate rise is coming.
“There are uncertain headwinds as investors await key election results in Europe, notably in France and the Netherlands. This was partly responsible for the euro’s fall against the dollar and sterling. Looking ahead we will continue to monitor geopolitical events as well as Opec’s commitment to cut oil production,” said Darragh Crowley of BGE.