The Bord Gáis energy index fell by 2% in August to give a reading of 108 with currency movements again impacting world energy prices. This was the lowest reading since April.
The index looks at the price movements in the wholesale energy markets and is made up of the four key energy commodities of oil, gas, coal and electricity.
The index notes that the price of oil fell from $78 a barrel to $74 in August, while the price of natural gas fell by 7% due to reduced storage injections in the UK.
The price of electricity fell by 2% last month with demand levels in August at similar levels to those of June and July. However, the index notes there were signs of growth in evening demand as the summer ends.
Prices in the coal market rose at first in August to $93 a tonne due to increased power prices in Germany. But the high stockpile levels in Europe and decreased demand from China helped prices ease as the month continued. Coal closed at $91 a tonne by the end of the month.
'Global macro-economic data continues to be the biggest driver of the movements in the Bord Gais energy index as a result of its effects on both currency and commodity prices,' commented Michael Kelleher, an energy trading analyst at Bord Gáis.
He said that the futures markets continue to price in a moderate rise in commodity prices in the coming months.
'However, the pace of economic recovery in developed economies in Europe and the Americas coupled with a confirmation of the rate of growth in developing economies could have a major impact on energy prices in the coming months, particularly oil and coal,' he added.
