The EU has called for gas storage facilities to be filled earlier due to the risk of rising prices — Bloomberg
European Commissioner for Energy Dan Jørgensen has urged EU countries to start filling their gas storage facilities earlier in order to avoid competition for supplies and a potential rise in prices.
Bloomberg reported this.
In a letter to the governments of member states, he also proposed lowering the target storage level to 80% and making more active use of the flexible mechanisms provided for in EU legislation.
Specifically, countries are allowed to deviate from this target by 10 percentage points, and in the event of unfavorable market conditions, by an additional 5 points. Meanwhile, the deadline for fulfilling gas storage obligations is December 1.
Jorgensen noted that supply security in the EU currently remains “relatively secure” thanks to limited dependence on imports from the Middle East and previous deliveries of liquefied natural gas through the Strait of Hormuz.
However, due to the war in Iran and the escalating situation in energy markets, Europe is facing increased competition for resources, which has already led to higher gas prices.
It is worth noting that oil prices may not fall even after the war with Iran ends.
The spikein oil prices due to the crisis in the Middle East is bringing Russia up to $150 million daily, according to the FT.
As a reminder, record-breaking oil price hikes: what’s happening, who stands to gain, and what to expect.
