– This will be a long crisis… energy prices will be higher for a very long time – Dan Jørgensen told the Financial Times, warning that for some “critical” products “we expect it to be even worse in the coming weeks”.
The near-closure of the key Strait of Hormuz waterway and strikes on energy infrastructure in the Gulf have created chaos in global energy markets, causing prices to spike and sparking long-term supply fears. Airlines have expressed particular concern about jet fuel supplies.
– The rhetoric we use and the words we use are now more serious than they were earlier in the crisis – said Jørgensen.
– Our analysis is certainly that this will be a long-term situation and that countries must be sure that they have what they need – he said.
He said that while the EU is “not yet in a security of supply crisis”, Brussels is drawing up plans to deal with the “structural, long-term consequences” of the conflict.
That includes “preparing for worst-case scenarios” even if the bloc “has not yet reached” the need to impose rationing on critical products like jet fuel or diesel.
– I mean, better to be prepared than sorry – said Jørgensen.
Asked about the possibility of loosening jet fuel regulations to allow more US imports or allow more ethanol blending for auto fuel, Jørgensen said “we’re not yet where we’ve corrected or changed any of our current rules.”
But he added: “We are considering all possibilities and it is clear that the more serious the situation, the more we will have to explore legislative tools, of course.”
The EU and the US have different standards for jet fuel. Jet fuel in the EU has a freezing point of -47°C, while in the US it is -40°C.
Jørgensen also said he “would not rule out” another release of strategic energy reserves “if the situation becomes more difficult”. Last month, EU countries took part in the biggest release of strategic oil reserves in history, in an attempt to tame skyrocketing prices.
(Vijesti.ba / FENA)
