The European Commission has called on EU member states to act early, in a coordinated manner and with a common strategy, to ensure adequacy in oil and petroleum products, amid the new energy disruption caused by the crisis in the Middle East and the closure of the Strait of Hormuz. In a statement issued today, the Commission emphasizes that instability in international energy markets requires continuous monitoring, immediate information exchange and close cooperation between member states, so that the EU is prepared for any eventuality.
The Commission underlines that the EU is well prepared, thanks to the obligation of member states to maintain strategic oil reserves and to have emergency plans to address supply security disruptions. According to the Commission, EU member states participate by approximately 20% in the release of over 400 million barrels of emergency oil, within the framework of the mechanism coordinated by the International Energy Agency (IEA).
“Only by working together can we be stronger and protect our citizens and businesses”, says Energy Commissioner
Energy and Housing Commissioner Dan Jørgensen stated: “The EU’s energy supply security remains guaranteed. But we must be ready for a potentially prolonged disruption of international energy trade. That’s why we must act now. And we must act together, as a true Union. Only by cooperating can we be stronger and protect our citizens and businesses more effectively”.
Meanwhile, in a letter addressed to EU Energy Ministers, Commissioner Jørgensen called on member states to strengthen their coordination through the Oil Coordination Group and the Working Group on Energy Union Security, and to consider demand conservation measures, with particular emphasis on the transport sector, as recommended by the International Energy Agency in its 10-point plan for reducing oil use.
The Commission also recommends that member states avoid measures that could increase fuel consumption, restrict the free circulation of petroleum products in the single market, or discourage production from European refineries. It is further emphasized that governments should be in continuous consultation both with neighboring member states and with the Commission itself, to maintain coherence at European level and protect the functioning of the internal market.
In the same context, the Commission suggests postponing any non-urgent refinery maintenance, to ensure adequacy in the EU market, while noting that increased use of biofuels could also contribute to replacing fossil fuels and easing market pressures.
Informal teleconference of energy ministers
For its part, the Cypriot Presidency points out that today’s informal teleconference of Energy Ministers aims to formulate a coordinated European response to the effects of the Middle East crisis on energy markets. As a relevant official states, the priority is to achieve balance between supply security, affordable energy prices and market stability.
According to the Cypriot Presidency, although EU energy security remains assured, Europe – as a net energy importer – is already experiencing strong pressures from international turmoil, with natural gas prices having increased by approximately 70% and oil by 50% since the crisis began.
In today’s discussion, ministers are expected to exchange assessments on the latest developments in energy markets, identify areas for better coordination and examine specific measures at European level.
