The EU could end up rationing fuels if the energy shock worsens

BarcelonaThe European Union is considering possible measures such as rationing fuel and releasing more oil from strategic reserves in the face of the risk of a "lasting" energy shock stemming from the war in the Middle East, European Commissioner for Energy Dan Jørgensen said this Friday in an interview with the British newspaperFinancial Times. The bloc is evaluating "all options", according to Jørgensen, who warned that "energy prices will be higher for a long time".

The commissioner indicated that, although the EU is "not yet" in a supply crisis, it is already preparing contingency scenarios for possible structural effects of the war initiated on February 28 by the United States and Israel against Iran. However, Jørgensen makes it clear that the most drastic measures are currently only contemplated as a precaution and that in no case is the possibility of applying them in the immediate future on the table.

"The rhetoric we are using and the words we are employing are now more serious than at the beginning of the crisis," Jørgensen said in the interview, adding: "Without a doubt, our analysis is that it will be a prolonged situation and countries must ensure they have what they need." "We are preparing for the worst-case scenarios, although we have not yet reached the point of needing to ration critical products like kerosene or diesel. It is better to be prepared than to regret it," stated the Danish social democratic politician.

After the first attacks, the price of Brent crude oil —the benchmark— rose to almost 120 dollars per barrel, currently trading around 107 dollars, although volatility remains in the markets due to the de facto closure of the Strait of Hormuz, controlled by Tehran and through which normally 20% of the world's crude oil maritime transport passes.

Release of reserves

Likewise, the European Commission's top energy official does not rule out further releases from strategic reserves if the crisis worsens, and has reiterated that the EU does not plan to modify its regulatory framework this year to end imports of Russian liquefied natural gas, as it can resort to supplies from the US and other partners if necessary.

In addition, the Financial Times indicates that airlines are among the sectors most concerned about kerosene supply, in a context of regulatory divergences between the EU and the US regarding fuel specifications. On this matter, the commissioner has assured that, for the moment, Brussels does not plan to modify the current regulations, although he has also opened the door to changes if the situation worsens: "We are analyzing all possibilities and it is clear that the more serious the situation, the more we will also have to study legislative tools," Jørgensen pointed out.