Global energy prices rose by 6% in July and are up by 12% year-on-year, according to the latest Bord Gáis Energy Index.
The July figures are the first rise to be seen in 2017 and come amid currency fluctuations and Brent Crude breaking the $50 mark. Oil, gas, coal and electricity were all up, with oil increasing by 10% in dollar terms or 6% in euro.
“It is interesting to see the index rise for the first time this year, as well as seeing oil make its first monthly gain in the same period,” said Bord Gáis Energy trader Darragh Crowley.
“Even more interestingly, these gains were offset in Europe by a strengthening euro – implying that the fluctuating currency markets are having an increasing influence on global and European energy prices,“ he said.
“The strong oil price recovery in July, which leads the market for global energy, may provide US producers with an opportunity to lock in selling prices for future production – meaning we could well see US production pick up again in the coming weeks.
“In addition, the market will be watching OPEC production carefully for any signs that the adherence to production cuts is starting to slide.”
In electricity, wind supplied just over 12% of demand as the wholesale price grew by 8% for the month. Natural gas is up 3% for the month and 5% year on year, while coal is up 5% – a rise of almost 90% as China moves to support the fossil fuel.