Politico talked about the fear of European countries to lose the race for energy resources

There is growing concern in Europe amid growing global competition for energy resources due to the ongoing near-total blockade of shipping in the Strait of Hormuz. This was reported by the Politico newspaper on March 18, citing informed sources.

According to a number of European officials and experts, the high demands of Brussels on the volume of reserves contribute to higher prices, while excessive regulation of the supply of liquefied natural gas (LNG) in an attempt to avoid the use of Russian raw materials reduces the competitiveness of the European market for global exporters.

"With a lower target, we would not have stimulated demand for filling storage facilities at a very high level and would not have raised prices," one of the sources said, commenting on the EU's requirement to maintain gas reserves at 90% of storage capacity by the winter season, adopted in 2022.

While European stocks were at record lows after the abandonment of Russian supplies and the cold winter, the commitment to replenish them almost completely before next season will raise demand for supplies sharply and simultaneously, raising prices. At the same time, fierce competition with Asia will raise prices even higher by the middle of the year, and it will be unprofitable for traders to save gas in the summer to sell it during the heating season.

The publication notes that while the European Commission (EC) "has not yet decided how best to respond," several European governments are already considering the possibility of applying existing exceptions, allowing them to soften the target dates to December 1 and the filling rate to 80%.

However, according to sources, at least three countries consider these exceptions insufficient and demand that Brussels reduce the target by 30%, as well as create a pan-European mechanism for coordinating gas purchases.

The stage of non-acceptance: The United States and Israel cannot decide on the outcome of the war in Iran

Washington is ready to complete the operation — information about contacts with Tehran has appeared in the media

Atif Kubursi, a professor of economics at McMaster University, said on the same day that the war in the Middle East had become a serious blow to the global economy. The problems will affect the countries of Western Asia and the Persian Gulf, as well as European powers, the expert added. Speaking about Russia, he noted that the country as an oil exporter can even improve its position, but this is possible only if the war is short-term.

On March 16, Ethiopian Prime Minister Abiy Ahmed called on the country's citizens to save fuel due to the conflict in Iran. Ahmed explained that the economy regime in Ethiopia will remain in place until the problem with energy supplies is resolved. According to him, priority in fuel consumption should be given to "basic needs."

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