CCNI’s head of energy policy Raymond Gormley believes oil prices will remain high until peace negotiations between the US and Iran resume.
Brent crude – the global benchmark for oil prices – rose more than 6% on Thursday following several days of increases as the US stepped up military strikes against Iran.
Prices spiked after Houthi militia in Yemen attacked oil tankers in the Red Sea, threatening a key export route that Saudi Arabia has used to bypass the Strait of Hormuz.
In Northern Ireland, there have been increases of about 42.86% (£152.82) across 300, 500 and 900 litres of home heating oil orders since 26 February.
Gormley explained prices spiked dramatically at the beginning of March and peaked on 9 April with recent price movements trending downwards until the end of June.
However, since early July oil prices have been “creeping upwards until the middle of the month then stagnating”.
“Prices had reached a four-month low up until the end of June, but since July we have seen prices rise again in response to the escalation of fighting between the US and Iran that has disrupted key oil-producing and shipping routes,” said Gormley.
“With oil supply under pressure and increasing uncertainty, the cost of heating oil is likely to continue to remain high until peace negotiations resume.”