The EU reassures: “Oil supplies in April not at risk, but prices will be affected. Measures on the way”

Brussels – There is no immediate risk to the security of oil supplies in the European Union, but there is growing concern over price trends, and a package of measures is being prepared. This was the outcome of today’s (8 April) meeting of the ad hoc oil coordination group convened by the European Commission to monitor energy security in the context of international tensions. According to a European official speaking on the sidelines of the meeting, “there are no risks to the security of oil supplies, nor are any expected for the month of April”. Rather, the concern is “the impact on prices“, which are heavily influenced by global dynamics and geopolitical uncertainty. At the same time, “it appears that the impact on the market may be limited due to transit times and considerations relating to logistics, insurance, and bottlenecks in the Strait of Hormuz.”

According to a statement by the European Commission, during the discussion, representatives of the Commission, Member States and industry emphasised that the European Union “has the tools to manage this crisis,” thanks to a strategy of diversifying energy sources launched in recent years and limited direct exposure to the region involved in the conflict prior to its outbreak. Furthermore, Brussels is also preparing a series of concrete measures to support Member States and mitigate the economic effects of the crisis. “The EU has the necessary tools to manage this crisis,” the European official stated. “This is the result of proactive diversification and the fact that our direct exposure to the region was limited prior to the conflict. A set of concrete measures is being prepared,” he added, “to help Member States mitigate the impact of the crisis.”

The discussion also revealed that, at present, “oil supply remains stable,” although it continues to be affected by fluctuations in international prices. Industry representatives, however, expressed concern about uncertainties regarding the duration of the conflict, reiterating the need to avoid undue interference in markets and to ensure transparency and coordination at the European level. The issue had already been the focus of the Transport, Telecommunications and Energy Council’s extraordinary meeting  on 31 March, during which the Commission and EU countries shared the latest data on stocks and market conditions.

The ad hoc coordination group on oil is, according to the European Commissioner for Energy and Housing, Dan Jørgensen, a major source of support, alongside the Energy Union “Security” Task Force, for strengthening coordination and promoting joint planning capable of “optimising the balance between supply and demand in the long term.” The European Commissioner had explained this in a letter to all EU energy ministers, asking Member States to “make timely and coordinated preparations” to ensure the supply of oil and refined petroleum products within the Union.