EU imports most of the oil it consumes, making it highly exposed to external shocks
This Monday, the European Commission admitted “regional constraints on the supply” of oil if the blockade in the Strait of Hormuz continues until June, which affects, above all, aviation fuel, considering cost-saving measures within the community.
“Although there is currently no fuel shortage in the E.U. [União Europeia]regional supply constraints could arise in the coming weeks if the blockage of oil supply through the Strait of Hormuz is not resolved, with aviation fuel being the main concern”, states the Community Executive’s General Directorate of Energy in a statement.
According to the note, released after a meeting of the Petroleum Coordination Group – which brought together experts from the European Commission, EU countries, the International Energy Agency, NATO and representatives of the oil industry – the experts “highlighted that, if the situation persists, it will be necessary to combine any release of these reserves with fuel saving measures, so that emergency reserves can be managed more efficiently and for longer”.
The group met to discuss the situation of oil supply security in Europe and the coordination of the response at EU level, as the conflict in the Middle East continues involving the United States, Israel and Iran, having discussed “the prospects for the EU and the coordinated approach of the Union if the situation lasts until June”.
“The Petroleum Coordination Group will continue to meet regularly and frequently to ensure a coordinated response to any developments related to the supply of aviation fuel in the EU”, it is indicated.
Brussels adds that it “will continue to assess the overall impact of the situation in the Middle East on Europe, support coordinated action where necessary and maintain regular communication with EU countries, the International Energy Agency and market participants”.
The executive director of the International Energy Agency, Fatih Birol, warned this Monday that the ‘cushion’ of commercial oil reserves accumulated before the war in the Middle East and the closure of Hormuz will be exhausted in a matter of weeks.
Earlier, about a week ago, the European Commission said it was mapping emergency reserves in the EU given the energy crisis caused by the conflict in the Middle East, but ruled out any problem in the supply of aviation fuel at this time.
At a time when almost three months have passed since the attacks by the United States and Israel on Iran and the consequent Iranian response, we are already seeing consequences for aviation such as increased costs, an impact on operations due to high energy prices, disturbances on routes and increased risks for global logistics.
EU laws oblige member states to maintain strategic reserves of 90 days of oil, and it is up to member states to decide which part is crude oil and which part is refined products, including kerosene and jet fuel.
The EU imports most of the oil it consumes, which makes it highly exposed to external shocks such as the current energy crisis related to the conflict involving Iran, the United States and Israel.
