ENERGY PRICES fell 1 per cent in January, a new survey has claimed, despite the rise in oil prices that has seen the commodity trade at more than $100 for the first time in more than two years.
The Bord Gáis Energy Index, which measures prices in the wholesale energy market, fell by 1 per cent last month to 135. A combination of lower natural gas, coal and electricity prices, and a weakening of the dollar against the euro, contributed to the decline, the survey said.
Oil hit $100 a barrel on January 31st, the first time it has reached that level since September 2008. The rise has been fuelled by unrest in Egypt, giving rise to concerns that supplies might be disrupted and the Suez Canal closed.
“Rising oil prices suggest that the commodity has found a new, long-run trading range. The recent higher prices are not due to supply and demand fundamentals but rather the social unrest in Egypt and the surrounding region.
“While Opec is keen to avert any danger posed by higher oil prices to the global economic recovery, they say that releasing spare capacity will not ease prices in the current circumstance,” said Michael Kelleher, energy trading analyst at Bord Gáis Energy.
Natural gas prices stabilised but showed an 8 per cent decline from last month’s average as temperatures in the UK and Ireland rose in the first week of January and new supplies arrived.
Coal prices were also lower, closing the month at $118.50 per tonne ahead of warmer temperatures in the northern hemisphere.
