Increase in world gas prices leads to tariff rise next month for Ten Towns Network area Find out more

Help & Advice Tip: My Pay-As-You-Go Top-Up meter is not working! I have no heating. My meter has error codes. Please Help!

Click Here
Select your town (change) We have set your location here.
You can change it at any time by clicking on the link above.
Wholesale energy costs

firmus energy Index indicates oil prices starting to rise

Image: firmus energy Index August 2015 report

firmus energy Index rose

After falling for three months in a row, the wholesale cost of oil has edged upwards. The firmus energy Index rose by three per cent in August to stand at 76. The recovery however was far from being broadly based. The price of gas, coal and power all dropped during the month but their decline was more than offset by a six per cent increase in the price of oil, the dominant element within the Index.

Image: firmus energy feIndex graph for August 2015

Cost of crude

Paul Stanfield of firmus energy explains: “Whatever is driving up the cost of crude, it is not a sudden evaporation of the global oil glut. OPEC members Saudi Arabia, Iraq and Iran are all reported to be pumping strongly. While growth in US production has halted, it has not gone into a sharp reverse. As a result world stocks are at their highest level since the financial crisis of 2008/9.”

In the absence of more solid explanations, some observers believe the price turnaround has more to do with nervous hedge funds unwinding bets on oil’s continuing decline.

Fifty five dollars a tonne
 

There was no bounce in the price of coal and it fell by four per cent finishing the month at just under fifty five dollars a tonne. As the world’s biggest buyer of coal, China plays a crucial role in the fortunes of this fuel. Partly because of environmental concerns, the country imported around thirty per cent less coal year on year. This trend is set to continue with the recent devaluation of the renminbi expected to make future purchases even less attractive.

Imports of liquefied natural gas
 

Gas prices fell in August by eight per cent bringing the average cost of a therm to just under forty pence. An influence was imports of liquefied natural gas which reached a three year high towards the middle of the month. Meanwhile forward prices have continued to soften. The winter contract ended August at around forty four pence a therm

Electricity fell by one per cent 
 

The price of electricity was pulled in different directions last month with lower gas costs giving a dragging effect. Almost eclipsing that impact though was a drop in output from wind farms and coal fired stations which traditionally tend to keep prices in check. The result was that the wholesale cost of a unit of electricity fell by one per cent to just under 4.7 pence.

Looking to next year, Barclays are forecasting a climb in the price of Brent crude to around sixty five dollars a barrel as demand for oil comes more into line with supply.

About the Author

Paul Stanfield Profile Image
Paul Stanfield, Director of Sales, Marketing & Customer Operations

Paul Stanfield is Director of Sales, Marketing and Customer Services at firmus energy. Paul joined firmus energy in 2009 and has over 30 years’ experience in the Northern Ireland energy market. He has extensive knowledge of the industrial/commercial and domestic sectors within the Northern Ireland natural gas industry. Paul is responsible for delivering commercial growth across the company’s business and domestic channels and accountable for customer service and marketing.

Comments

Related Posts

Popular tags

Stay Connected

Sign up to
our Newsletter

Exclusive offers and latest news straight to your inbox!

What kind of business are you?

or
Why am I having to do this?

To give you the most accurate information for your town and county, please enter your postcode below.

How do you pay for your natural gas?

By Credit

Do you receive a monthly bill for your energy usage?

Yes
or

With a Pay as You Go card

Do you purchase a top-up card for your energy?

Yes

What kind of business are you?

Small or Medium Business

Small businesses spend about £2,600 or less per bill. Medium businesses spend about £35,000 or less per bill.

or

Large Business


Large businesses spend about £250,000 or less per bill

Make sure you have your bank details and SMP or meter serial number ready

Bank details

All we need is your account number and sort code *

&

SMP Number

This is the number usually at the top right of your bill or on your connection paperwork

Okay, I have them

If your account requires 2 signatures, or you are not the bank account holder, please call us first on 0330 024 9000
If you don’t have this number, call our switch team on 0330 024 9000