The European Union is considering measures such as fuel rationing and releasing more oil from strategic reserves in the face of the risk of a “long-lasting” energy crisis stemming from the war in the Middle East, European Energy Commissioner Dan Jørgensen warned on Friday in an interview with the Financial Times.
The bloc is evaluating “all options”, says Jørgensen, who warns that “energy prices will remain high for a long time”. The Commissioner stresses that, although the EU is “not yet” facing a supply crisis, it is already preparing contingency plans in anticipation of possible structural effects of the war launched on 28 February by the United States and Israel against Iran.
Following the initial attacks, the price of Brent crude rose to nearly $120, and is currently trading at around $107, although market volatility persists due to the de facto closure of the Strait of Hormuz, controlled by Tehran and through which 20% of global crude oil shipments normally pass.
“The rhetoric we are using and the words we employ are now more serious than at the start of the crisis,” notes Jørgensen, adding: “Without a doubt, our analysis is that this will be a protracted situation and countries must ensure they have what they need.”
The commissioner insists that the most drastic measures are currently being considered solely as a precaution. “We are preparing for the worst-case scenarios, although we have not yet reached the point of needing to ration critical products such as kerosene or diesel. It is better to be prepared than to regret it,” he states.
The newspaper reports that airlines are among the sectors most concerned about kerosene supplies, against a backdrop of regulatory differences between the EU and the United States regarding fuel specifications. The politician assures that, for the time being, Brussels does not plan to amend the current regulations, although he left the door open to changes if the situation worsens.
“We are analysing all possibilities and it is clear that the more serious the situation becomes, the more we will also have to consider legislative tools,” he notes. Furthermore, Jørgensen does not rule out further releases from strategic reserves should the crisis worsen, and reiterates that the EU does not plan to amend its regulatory framework this year to halt imports of Russian liquefied natural gas, given that, if necessary, it can turn to supplies from the US and other partners.