Friday 23 August 2019

Gas, electricity and coal costs fall in June but oil bucks trend

Energy

Europe's gas stores are already more than 70pc full following a mild winter. Stock image: PA
Europe's gas stores are already more than 70pc full following a mild winter. Stock image: PA

Wholesale energy prices are 21pc lower than last year, driven by strong supplies of natural gas following a mild winter and slumping demand for coal, according to the Bord Gáis Energy Index report.

Yesterday's report for June found that overall energy costs to utilities and distributors fell 3pc from May, led by a 15pc decline in the price of natural gas and a 12pc drop for electricity.

Europe's gas stores are already more than 70pc full following a mild winter, the report said. It cited rising competition between providers of tanker-delivered liquefied natural gas, and Norwegian and Russian gas delivered by pipelines, for weakening prices further.

Oil prices bucked the trend, rising 1.4pc to $66.50 (€59.20) a barrel following attacks on tankers in the Gulf of Oman.

Coal prices dropped 15pc in June to a three-year low of $49 a tonne, some 48pc lower than a year ago.

The report said coal-fired power plants in the UK increasingly were pivoting to gas, wind and solar generation, while Chinese restrictions on Australian coal imports were also driving coal prices lower.

Indo Business

Also in Business