The Bord Gáis energy index rose by 8% in November to stand at 121 as the earlier than expected cold snap led to increased energy demand and as the euro weakened.
The index is designed to track movements in the wholesale energy market and is made up of the four key energy commodities of oil, gas, coal and electricity.
'November saw some considerable movement in key commodities, driven primarily by instability in the euro and a weather-influenced surge in demand for energy,' commented Michael Kelleher, energy trading analyst at Bord Gáis.
'Uncertainty in the global economic outlook has resulted in a notable degree of caution among energy trades. In the more immediate term, a severe winter could put additional pressure on the price of commodities as supplies are strained,' he added.
The index shows that after hitting a high of $89.70 a barrel by the middle of November the price of oil fell to $86 a barrel by the end of the month after a strengthening of the US dollar and concerns on debt levels in euro zone countries.
Prices for natural gas were stable for the first half of November before rising due to higher demand because of the cold weather.
Bord Gáis says that coal stocks in Europe fell at the start of the month due to strong demand, heavy rainfall in Columbia and a shortage of rail cars in Russia which restricted deliveries. But as the month came to a close, prices rose to over $114 per metric tonne with an increase in demand in China coinciding with supplies in Australia delayed by heavy rain.
Irish electricity prices saw just a slight increase in November despite the cold weather and a marked increase in demand. Evening prices rose more significantly, but the increase was balanced by a fall in daytime prices as efficient electricity plants set off peak prices.
