The Bord Gáis Energy Index has fallen to a four year low as global oil prices continue to decline.

Although wholesale prices for natural gas increased by 5 per cent, for coal by 2 per cent and for ectricity by 3 per cent, the plunging oil prices caused the index to fall by 9 per cent.

Brent crude oil fell by 18 per cent in November and is now 30 per cent lower than this time last year. The price of a barrel of oil had been weak throughout November but news that Opec decided not to cut its daily production target on November 27th resulted in prices plunging in the steepest one day fall since 2011.

Gas and power trader at Bord Gáis John Heffernan said the low oil prices have come about because of increased levels of production and falling demand.

“The continued emergence of North America as a substantial producer of oil has had a significant impact on global crude oil prices. The reality is that the globe is now awash with oil and this, combined with the diminishing demand for oil, has resulted in the front month Brent crude price dropping by nearly 40 per cent since the high of 2014 – a low not seen in over four years,” he said.

Mr Heffernan said the increase in gas and coal prices was due to a stronger US dollar while electricity prices were increasing because of rising production costs.