Europe must prepare for a prolonged energy crisis – European Commissioner

The EU is assessing various options for responding to the crisis caused by the war in the Middle East

The EU is exploring all options, including fuel rationing and releasing more oil from emergency reserves, as it prepares for a prolonged energy crisis caused by the war in the Middle East. European Commissioner for Energy Dan Jørgensen made these remarks in an interview with the Financial Times.

“This will be a prolonged crisis… energy prices will remain high for a very long time,” he noted.

Jørgensen added that the European Commission expects the situation to worsen in the coming weeks for some of the most critical commodities.

The conflict in the Middle East has created chaos in energy markets and led to a sharp rise in prices and concerns about long-term supplies.

The European Commissioner for Energy noted that the EU’s analysis clearly shows this will be a prolonged situation, and countries must ensure they have what they need. He added that while the European Union is not yet facing a supply security crisis, Brussels is developing plans to address the structural, long-term consequences of the conflict.

Jørgensen said that the EU is preparing for the worst-case scenarios, even though the bloc has not yet reached the point where it needs to ration critical products such as aviation or diesel fuel.

He also did not rule out another release of strategic energy reserves if the situation deteriorates significantly. In March, EU countries participated in the largest release of strategic oil reserves in history, in an effort to curb soaring prices. The European Commissioner did not provide a precise assessment of when or whether a new release might be necessary, but said the bloc is taking this very seriously.

Dan Jørgensen also reiterated his position that there will be no changes this year to EU legislation regarding the suspension of Russian liquefied natural gas imports — instead, it is acceptable to rely on the US and other partners to provide additional supplies, as they operate in a “free market.”

As a reminder, in early March, the global steel market was bracing for major upheavals following the escalation of the conflict in the Middle East and the subsequent threat to shipping through the Strait of Hormuz.