Belfast Telegraph

Fuel costs drop as crude surplus hurts markets

By John Mulgrew

Wholesale fuel costs have fallen as markets continue to be swamped by a surplus of oil, according to the latest energy index.

The index from firmus, the second-biggest gas supplier in Northern Ireland, fell to 74.

It's the lowest figure recorded since the benchmark was launched over five years ago.

Paul Stanfield of firmus energy said: "The main reasons why the recent recovery in prices stalled are clear.

"It appears that Saudi Arabia's determination to maintain market share, while shale oil continues to flow in the United States, leaves markets awash with crude.

"Low prices may in time deter the US oil producers, but for the moment there are few reasons to expect an early reversal in prices."

Meanwhile gas prices looking into winter and next summer "continued to soften", partly due to oil prices.

The wholesale price of power also flatlined in July, staying around 4.7p a kWh.

And the price of coal continued to subside last month.

The firmus index said the level hasn't been this low in more than seven years.

Belfast Telegraph