Faced with increasingly pressing risks to energy supply security - directly linked to the conflict in the Middle East - the European Commission continues to monitor the situation closely.
Last week, European Commissioner for Energy Dan Jørgensen warned of potential disruptions to the supply of diesel and jet fuel (see EUROPE 13840/1).
To discuss these issues, a new meeting of the Oil Coordination Group is scheduled for this Wednesday 8 April, followed by a meeting of the Gas Coordination Group the next day.
“The first step is [...] to hear from Member States about their situation, especially as regards jet fuels. These are largely private contracts between air carriers, airline companies, [and] suppliers”, explained Commission spokesperson Anna-Kaisa Itkonen on Tuesday 7 April.
Coordinated initiatives at EU level. More broadly, the Commission intends to tackle high energy prices in Europe and plans to shortly publish a ‘toolbox’ of targeted measures, including proposals to address electricity prices, grid charges and CO2 emissions pricing (see EUROPE 13840/1).
“We will take a very global overall look [at] the current situation”, added Ms Itkonen. She also stressed that, since the 2022 energy crisis, Member States have had access to solutions, such as introducing temporary regulated tariffs for vulnerable households and lower retail prices to reward citizens participating in energy demand management.
In addition, a number of Member States voluntarily took part in the collective release of 400 million barrels of oil from the emergency reserves of International Energy Agency (IEA) countries on 11 March (see EUROPE 13826/1).
The Commission also has the option of releasing stocks itself, in accordance with the 2009 Oil Stocks Directive. National initiatives are also permitted, but must be systematically notified to the European Commission so that it can monitor and ensure, over time, a stable oil reserve corresponding to 90 days’ average daily net imports.
A crisis deemed “more serious than the ones in 1973, 1979 and 2022 combined“. The tone adopted by IEA Executive Director Fatih Birol this Tuesday regarding the situation in the Middle East was more alarmist, as evidenced in an interview with the French daily newspaper Le Figaro. The energy price crisis resulting from the blocking of the Strait of Hormuz, as part of a conflict triggered by the 28 February Israeli-American attack on Iran is “more serious than the ones in 1973, 1979 and 2022 combined”, he said.
In doing so, he drew parallels to the two oil shocks of the 1970s and the energy crisis that shook Europe in 2022, following Russia’s invasion of Ukraine.
One of the most scrutinised men of the moment pointed out that this new crisis was disrupting not only supplies of oil and gas, but also fertilisers, petrochemicals and even helium.
If the Strait of Hormuz remains closed throughout April, “we will lose twice as much crude oil and refined products as in March”, he warned, also deploring the damage caused to some sixty energy infrastructure sites in the region.
All of this unfolds against a backdrop of extreme tension, with Iran explicitly threatening on Tuesday to take action against infrastructure that “would deprive the United States and its allies of the region’s oil and gas for years to come“. This threat was made just hours before the expiry of a new ultimatum from US President Donald Trump, urging Tehran to reopen the Strait of Hormuz or risk destroying essential infrastructure in Iran. (Original version in French by Pauline Denys)