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THE CONFLICT IN Iraq could drive oil prices above the record price of $145 per barrel hit in 2008, Bord Gais has warned in its monthly energy price monitor.
The land grab by militant Islamic group ISIL sent oil prices up by 2% during June.
In a statement accompanying the Bord Gais energy index, power trader John Heffernan said that “with global oil demand expected to increase sharply, a complete loss of Iraqi exports would have dramatic consequences for global oil prices”.
It would not be inconceivable for prices to surpass the record high reached in July 2008…with the world having no spare capacity anywhere.
He said that traders were concerned by the nature and scale of the ISIS territorial grab. Globally limited extra production capacity means that a brake on Iraqi oil supplies would result in oil price spikes.
Gas prices remain low
Despite the hike in oil prices caused by the instability in Iraq, the low price of gas meant that wholesale Irish energy prices remained steady for June.
Overall, there was a 12% drop in the average price paid for gas, with UK stocks still very healthily stocked at 82% of capacity after a particularly mild winter led to low demand there.
Ireland sources the majority of its gas from the UK market.
The situation in Ukraine has not yet impacted gas prices, with supplies from Russia still unaffected by the dispute there.
However, Heffernan warned that the conflict in Eastern Europe could still hit Irish energy prices.
“If this dispute continues into the autumn it raises the possibility of the Ukraine siphoning off gas bound for Western Europe to satisfy rising domestic demand.”
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The sooner we can source energy either domestically or from more stable markets the better. We are being held to ransom by these lunatics…
A generator being powered by urine was reported recently – we don’t need their stinking oil – we have our own stinking…..
Don’t make a war the scape goat for increasing prices.
The government is solely to blame for Ireland having the 4th highest petrol prices in the WORLD.
Taxes and duty accounts for more than half the retail cost of motor fuel.
Gas prices could rise….oil prices could rise ….Water charges will be introduced….electricity companies threatening inflationary rises. ….gee…another great day on the planet ( LW).
And spoke are being killed in a war aswell…….
#people
TURF !
They will use any excuse to raise prices. When the trouble subsides then the price never seems to fall. Then the next time someone says boo to the wrong person the price shoots up again. This ratchet effect has us paying through the nose for fuel.
Come on fusion. See how many gold Bentleys they roll around in then.
American foreign policy is very clear on the matter ; “We fight – everyone else pays !”
I’m torn.
On one hand, this will bring needless suffering to motorists and businesses around the world.
On the other, I’m in Alberta looking for oil work. Demand’s going up. MORE WORK YEEEAAAAHOOOOOOOOO!!!!!!
I’m going to hell aren’t I?
The Chinese are taking all the oil they can get from Canada so best of luck to you in your quest :-)
PS Colm, if you really want to go to hell try Kharg Island for your next job.
Fill the oil tank now and hope it doesnt get robbed or wait. Decisions to be made.
Fill it now and booby trap it for any scvvmbag who tries to go near it…
USA will invade if prices go too high.
Buy a clue…US is the largest producer of oil in the world…
This is the fault of the US
The US will soon be exporting oil and gas [ not legal yet but they need the money]
Any excuse to take more money!!
I don’t see why a conflict in Iraq should effect the price of motor fuel here. All petroleum products sold in this country come from Brent North sea, it’s refined in Whitegate, Co. Cork. None of our fuel comes from anywhere near the Middle east.
I thought a barrel of oil was fairly low at the moment, just our taxes were high….
This should bring an end to the foolishness in the Ukraine.
Israel has called up the troops as Hamas continues to bombard Southern Israel so hang on to your hats ladies it’s payback time.
Any excuse to rise the price of oil!!!
All going to plan then.!
Th
This world is a mess. From hunger to uneven distribution of wealth , the destruction of the environment to the corruption of politicians .Its one big sh11ty mess that will just get bigger and bigger .
have your say