Monday, October 08 10:27:06
Bord Gais' energy index, which tracks Irish energy price trends, rose by 11pc in September despite a slight drop in global oil prices.
Oil prices fell slightly - by 1pc - in September but were still up 12pc in the last three months, the latest Bord Gais Energy Index shows today.
The fall came on amid efforts by global powers to address the recent record highs in oil prices.
As a result, the Bord Gais Energy Index now stands at 150, an increase of 11pc on September 2011 following a year of rallying oil prices, the Dublin-based energy analyst said.
Despite this month's slight fall in the price of Brent crude oil, the price has rallied $23 or 26pc since June and remains at historic highs.
"A combination of factors led to a slight drop in oil prices in September. Firstly, rumours of a drawdown of US emergency oil stockpiles helped ease oil supply anxieties. Secondly, a rare statement from the G7 finance ministers calling on oil producing countries to increase their output in order to ease the ongoing pressure on oil prices appears to have been somewhat successful. In response, OPEC members signalled that a price of $100 for a barrel of oil was acceptable and that markets were well supplied to meet any extra oil demand. This reassurance appears to have had a calming effect on the markets and led to the slight reduction in oil prices," said John Heffernan, power trader at Bord Gais Energy.
Furthermore, lower oil prices will significantly help support fragile global economic growth. In September Central Banks in the US and Europe announced their intention to buy bonds and this is seen as an additional and complimentary policy move to stabilise and stimulate the economic situation.
However, despite these co-ordinated efforts, the price of oil continues to be under pressure due to various geopolitical developments, particularly in relation to the Middle East and the ongoing concerns about Iran's nuclear programme. Additionally, a potential maritime dispute between China and Japan in the East China Sea and the collapse of the Iranian rial and shelling of a Turkish town by the Syrian government makes the outlook for oil prices very uncertain, the analyst said.