THE BORD Gáis Energy Index recorded an increase in the price of both gas and coal for the month of September.

Fears of a second global recession saw the price of Brent crude oil tumble $12 (€8.97) per barrel over the course of the month.

The fall in oil prices was offset in Europe by a 7 per cent depreciation of the euro versus the US dollar, which led to a net 4 per cent decline in oil prices in euro terms. Despite the drop, the index, at 135, is still 21 per cent higher than it was in September 2010, when it stood at 111.

Bord Gáis Energy said the threat of a global economic slowdown due to the Greek debt crisis, concerns over a number of European banking institutions and weak economic data recorded in the US sparked the steady fall of oil prices in September.

Futures markets indicate the possibility of a further fall in oil prices in coming months. Natural gas prices are likely to continue to rise in the cold winter, as these prices are linked to oil prices from the preceding three to nine months. Meanwhile, cold weather may push up the cost of electricity due to increased demand.

The oil element of the index was down 4 per cent. Oil fell steadily as fears of a second global economic slowdown escalated.

The natural gas element of the index was up. The first half of the month saw prices continue to rise as a result of the traditional September maintenance of fields, pipelines, Qatari liquefied natural gas facilities and various other parts of the natural gas infrastructure.

Unseasonably warm temperatures in the latter half of the month resulting in weaker demand caused a decline in prices.

The coal element of the index was up, while the electricity element was down.