EU says energy prices may stay elevated even if the Iran war ends
The Facts
- EU Energy Commissioner Dan Jørgensen said Europe’s oil and gas prices are not expected to return to normal immediately even if the war involving Iran ends.
- Jørgensen made the warning on Tuesday after a meeting of the EU’s 27 energy ministers.
- Jørgensen said there are no immediate overall oil and gas supply shortages across the 27-member EU, but there is pressure on diesel and jet fuel supplies.
- Jørgensen said increasing constraints in global gas markets are contributing to higher electricity prices in Europe.
- The European Commission urged member states to consider voluntary demand-saving measures on oil and gas use, with particular attention to the transport sector.
- Suggested energy-saving steps included working from home where possible, reducing driving, encouraging public transport, and increasing car sharing.
Context
Why does the EU say prices may stay high even if the conflict ends?
Jørgensen said that even with peace, Europe would not return to normal in the foreseeable future because diesel and jet fuel supplies are under pressure and global gas markets are becoming more constrained, which is also feeding into electricity prices 2 News Nevada,Yahoo! Finance,Euronews English.
Is the EU facing immediate shortages of oil and gas?
According to Jørgensen, the EU does not currently face immediate overall shortages of oil and gas supplies, though he said there is strain in specific areas such as diesel and jet fuel 2 News Nevada,Yahoo! Finance,Euronews English.
What actions has the EU asked governments to consider?
The Commission asked member states to look at voluntary demand-saving measures, especially in transport. Publicly discussed examples included encouraging remote work, lower driving speeds, more public transport use, and greater car sharing UrduPoint,POLITICO,POLITICO.
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