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Low price of oil brings fuel costs to six-year low

By John Mulgrew

Published 20/07/2015

Iran's President Hassan Rouhani; following the announcement of a nuclear deal, the country could increase its oil exports, flooding a market where supply is already outstripping demand
Iran's President Hassan Rouhani; following the announcement of a nuclear deal, the country could increase its oil exports, flooding a market where supply is already outstripping demand

Continued low oil prices have brought wholesale fuel costs close to a six-year low, according to the latest energy index.

According to firmus, the second-biggest gas supplier in Northern Ireland, wholesale fuel costs fell by 4% in June.

And while oil prices had witnessed a small resurgence over the last few weeks, the economic crisis in Greece reversed the trend.

The current subdued costs are down to a world glut of oil, with supply exceeding demand by three million barrels a day, according to firmus.

Paul Stanfield of firmus energy said: "Looking towards the future, if Iran ramps up oil exports next year following its nuclear deal with the West, the new production may well swamp an improving market for oil.

"The International Energy Agency has already advised that the cost of oil may fall further amid a 'massively oversupplied' market."

Meanwhile, gas prices also dropped by a small margin in June.

Forward prices for next winter and the following summer dropped despite a bigger than expected cut in supplies from Europe's biggest gas field.

And coal prices rose towards the end of June, after dipping to a six-year low during the early part of the month.

Belfast Telegraph

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