EU warns of energy price crisis, urges gas demand cuts - Bloomberg

The European Union has expressed concern over a looming energy price crisis, attributed to the ongoing conflict in the Middle East, according to a Bloomberg report. EU Energy Commissioner Dan Jorgensen has written to energy ministers, urging them to brace for the upcoming winter by reducing demand and continuing to fill gas storage facilities.

Jorgensen highlighted that the bloc's dependency on imported fossil fuels has left it vulnerable to turmoil in energy markets, warning of a "price crisis linked to a supply crisis." European gas prices have surged over 100% since the U.S.-led war on Iran began in late February, reaching their highest point since late 2022 earlier this month.

Gas storage levels in the EU are currently at 70%, below the usual 86% during this period, as higher prices have made it less cost-effective to store gas during the summer months. Jorgensen suggested that governments could adjust storage targets to 80% to alleviate price pressure and refilling costs. He also emphasized the need for sustained reductions in gas and electricity demand wherever feasible, while still maintaining necessary injections.