Wholesale energy prices nudge downwards

Sub-heading here

Wholesale energy prices nudge downwards
In a change from the norm, gas rather than oil decided the direction of wholesale energy last month.

A steady stream of imported LNG (Liquefied Natural Gas) helped drive the firmus energy index down by four per cent which now stands at 87.

The cost of oil, which has been seesawing since the start of the year, eased by just one per cent. It appears the recovery in prices from the January low of 47 dollars a barrel has petered out. Weighing down as ever on oil prices is the continuing glut on the world market. With OPEC refusing to cut output at its June meeting, the supply of crude has risen year on year by over three million barrels a day, outstripping an increase in demand by a factor of two to one.

Commenting on the May firmus energy Index, Des Brown, firmus energy’s director of marketing and customer operations explains: “Gas prices were led lower not just by imports of LNG into the UK but also by weakening demand amid rising temperatures. During the month the cost of gas dropped by seven per cent. However the future looks a little uncertain. Russian gas, the cost of which is linked to the lagged price of oil, should continue to get cheaper. But the on-going Ukrainian/Russian conflict might mean an interruption to those lower cost supplies.”

Low coal consumption in Europe and plentiful supplies, especially from Colombia, produced a modest one per cent price drop. The soft Western market reflects global trends. China, which accounts for half the coal burnt in the world, cut its consumption by eight per cent in early 2015. With demand only bearing up in poorer countries where consumers have less real choice, world prices are expected to continue heading lower.

The falling price of gas was a major factor in lower electricity costs. The wholesale cost of power dropped by nine per cent month on month. But windy weather played a part too as spinning turbines displaced more expensive power stations from the grid

Last updated on 11/05/2016

Key Information

Compare NI Electricity Prices

Our calculator will assist you search for the tariff that suits your needs. Just answer the questions to find out how suppliers are ranked on cost. Then check what bonuses and penalties may apply. But before switching, you should read our terms and conditions.

Renewables

Electric cars, solar panels, ground source heat pumps and wood burning stoves. The ways to cut your contribution to global warming are many and growing. What should you do and how much will it cost you? Click here for advice, tips and debate.

Central Heating Fuel Prices

Switching from one form of central heating to another is a challenging decision. Should you stay or should you go. It’s worthwhile checking how different fuels compare in price though past results are no guarantee of future performance.



Contact Us

How to get in touch

  • Comment and reaction is welcomed by enirgy.info. If you identify any errors, your messages are especially welcome. But if you simply disagree with the judgments expressed, please get in touch too by filling out the contact form as shown. We will attempt to get back to you within five working days with a response.

Send us a message