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Dublin: 13°C Tuesday 20 October 2020
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Energy prices are at their lowest point for four years

Thanks to the collapse in price of Brent crude oil.

Image: Shutterstock/Chris Twine

THE MASSIVE DROP in the price of crude oil has had a positive impact on Irish consumers: cheaper energy.

The Bord Gáis Energy Index hit a four year low as Brent crude oil fell by 18% in November and is now 30% lower than this time last year.

Despite month-on-month increases in wholesale natural gas prices, coal prices and electricity prices, the index fell by 9% in November, primarily due to plunging global oil prices.

The price of a barrel of oil had been weak throughout November but news that OPEC decided not to cut its daily production target on 27 November resulted in prices plunging to post their steepest one day fall since 2011.

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John Heffernan, gas and power trader at Bord Gáis Energy, said that energy prices are dropping because the planet is “awash” with oil.

“The continued emergence of North America as a substantial producer of oil has had a significant impact on global crude oil prices. The reality is that the globe is now awash with oil and this, combined with the diminishing demand for oil, has resulted in the front month Brent crude price dropping by nearly 40% since the high of 2014 – a low not seen in over four years.”

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