EU energy ministers discuss soaring fuel prices as winter looms
UNG•EU energy ministers are discussing ways to cut household energy bills and bolster supply as the bloc enters winter with gas storage 75% full, down from 83% a year earlier. European wholesale gas prices briefly reached €100 per megawatt-hour, their highest since December 2022.
1. Prices and supply
EU energy ministers are discussing household energy bills and security of supply ahead of winter as conflicts in Iran, Ukraine and Yemen send oil and natural gas prices higher. Energy Commissioner Dan Jorgensen said nearly 50 million Europeans cannot adequately heat their homes and warned the crisis could be worse than the one in 2021-2022.
2. Gas storage and prices
EU gas storage is 75% full, compared with 83% a year earlier. European wholesale gas prices briefly touched €100 per megawatt-hour on Wednesday, the first time since December 2022, and are around three times higher than before the Iran war. Jorgensen said the EU uses 18% less gas than in 2022 and has diversified its suppliers.
3. Steps under discussion
The European Commission has begun talks with refiners about boosting output, potentially by easing some technical specifications. France said Europe would release more than 42 million barrels over the next three months, half of it diesel. EU countries will also discuss proposed tax and grid-fee reforms to reduce electricity bills; Sweden and Poland opposed the tax measures ahead of the meeting.
