Author:Currency Explorer
AI Podcast: A New Way to Listen to the News Download MP3
The EU Energy Commissioner stated that the EU is assessing all possible responses, includingImplement fuel rationing and further release emergency oil reserves.In response to the Middle East war"Long-term" energy shock.
“This crisis will last a long time…energy prices will remain high for a considerable period,” Dan Jørgensen warned the Financial Times, adding that the supply situation for some “critical energy products” is expected to “become more severe” in the coming weeks.
The near-blockade of the Strait of Hormuz and attacks on energy infrastructure in the Gulf region have plunged energy markets into chaos, caused oil prices to soar, and triggered a prolonged supply panic.
“The wording and statements we are using now are more serious than at the beginning of the crisis,” Jorgensen said. “Our analysis clearly shows that the situation will be protracted and countries must ensure they have the energy they need.”
He pointed out that although the EU has not yet fallen into a supply security crisis,Brussels is already developing contingency plans to address the "structural and long-term impacts" of this conflict..
As the EU issues its warning, the energy shock has already swept the globe, pushing up inflation expectations, dragging down economic growth, forcing many governments to introduce consumer support plans, and some countries even restarting coal-fired power generation.
Jorgensen stated that the EU is "preparing for the worst," even though it hasn't yet reached the point of rationing key energy sources like jet fuel and diesel. "I would say it's always better to be prepared than to regret it later."
Concerns about jet fuel supply are particularly prominent in the aviation industry.
When asked whether the EU would relax its jet fuel standards to expand US imports or allow for increased ethanol blending in vehicle fuels, Jorgensen said, "We have not revised or changed any existing regulations at present."
But he added, "We are exploring all possibilities. The more serious the situation becomes, the more we will naturally need to consider using legislative tools."
There are differences in the standards for jet fuel between the EU and the US: the EU requires jet fuel to have a pour point of -47°C, while the US requires it to be -40°C.
Jorgensen also stated that he "would not rule out" releasing strategic energy reserves again if the situation worsens. Last month, the EU participated in the largest release of strategic oil reserves in history in an attempt to stabilize soaring oil prices.
Jorgensen declined to reveal the EU’s “specific analysis” on when a new round of reserve easing would be needed, but emphasized that “we take this very seriously and are ready to act if necessary.”
“We need to keep all options in mind, and as I judge, if this is indeed a long-term crisis, we will need to use these tools in the later stages,” he added. “The action must be timely and moderate in scale.”
Jorgensen also reiterated his position:This year, EU legislation will not be amended to stop imports of Russian liquefied natural gas.He said,It is feasible to rely on the United States and other partners to increase supply, since these suppliers operate within a "free market" framework.












