Comment from Darragh Crowley, Energy Trader, Bord Gáis Energy re. recent oil price changes...

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Comment from Darragh Crowley, Energy Trader, Bord Gáis Energy re. recent oil price changes...

Darragh Crowley, Energy Trader, Bord Gáis Energy regarding recent oil price changes…

"Since the summer, OPEC-led production cuts have tightened supply in the oil market and contributed to a 30% rally in the price of Brent crude oil - the international benchmark - up to just under $60 per barrel. While this fundamental shift in the supply / demand dynamic has been the key driver of these higher prices up to now, the impetus over the coming months may well be rising geopolitical tensions.

The recent disruptions to Iraqi exports as a result of fighting in the semi-autonomous Kurdish region, and President Trump’s decision not to certify Iran’s compliance with the previously agreed nuclear deal, could mean that geopolitical risks could lead to further rises in oil prices, and therefore energy costs, in Europe.”

Article Published: 26/10/2017