A European ban on crude imports from Russia this December will result in the worse energy crisis the EU has ever experienced, experts warn.
The move by EU countries to sanction Russia for daring to go to war with Ukraine by halting crude oil imports later this year is an attempt to “make the Kremlin pay” for the invasion, European Commission President Ursula von der Leyen recently declared.
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Summit.news reports: Though it’s only backfired as the Kremlin’s war chest has swelled by tens of billions of dollars as energy prices hyperinflate and new buyers are found in Asia.
EU leaders have stepped up efforts to transition from Russian energy to other energy-rich countries, though they might find it challenging to increase energy imports due to limited spare capacity worldwide.
Monica Malik, the chief economist at the Abu Dhabi Commercial Bank, told the audience at an energy security panel hosted by the Institute of International Finance in Washington, DC, on Monday that the Gulf states, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, won’t be able to increase production to replace Russian oil in Europe.
After all, the world is moving into a much tighter oil market for the remainder of the year after OPEC+ cuts. This could unintentionally spur a supercycle in pricing as brent crude inches closer to $100 a barrel.
So where will Europe source crude this winter if spare capacity worldwide is limited? Head of European Oil for Morgan Stanley Martijn Rats wrote in a recent note:
“The oil market is where it is because this question is so hard to answer. If we knew, we could all breathe a little easier.”
Without spare capacity — EU leaders will find it challenging to source crude around the world because production cannot be quickly ramped up.
Helima Croft, managing director at RBC Capital Markets LLC, warned, “I think we are facing the worst energy crisis in decades.”
Croft fears a populist backlash in Europe as sanctions against Russia has sparked a cost-of-living crisis. This could force some EU governments to focus on affordability. She said the probability of the US making deals with Venezuela or Iran to offset the energy crunch is unlikely.
One top EU diplomat admitted: “Our prosperity has been based on cheap energy coming from Russia.”
Europe’s energy security is in dire straits as the cold season nears. The problem with limited global capacity and higher energy costs will only strain Europe to the core. This winter, there are risks of power blackouts across the bloc as energy supplies from Russia dwindle — and the inability to rapidly increase imports from abroad. The UK warned about this scenario days ago.
Sean Adl-Tabatabai
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Only imbeciles don’t realize that they’ve planned the whole operation meticulously, every step like a ballet from decades ago.
Of course. Stuff like 9/11 and Covid were prepared years in advance.
Exactly what Im saying. All of it Planned They make 500 year plans That’s, how they work.
The control group the ONE% was`nt even around 500 years ago is that how old you dhink U R?
999 million years ago dino & the fish hat pope said SO!!!!
YEA ON DAY ONE they said X cally is screwed blued and tatted how the fluck do u fear mungs get outa bed OH u don`t !!
U MEAN! like the rich get richer&the poor get poorer DAH so insightfully meaningless
You’d be the expert on duh meaningless rhetorical crap arsehole.
Be nice pebble sands rocky or U/U&u get kicked out of your pope pig pen prison/ER? here at flake booze zzzzzz
You seriously need to seek mefical attention for your own good You aren’t well at all. Some sedation might help you stabilise and normalise
ROCKY is that U??? U mom called again about that! U know WTF?
& U got dah dope right munch kin flop off dude!
@Gamma Why read the comments at all if that is what you think. Why not just go back down to your mom’s basement and abuse your self again. What a loser you are.
Sticks&bone-ss which one R U 2day? OH ALL THREE a slow day here at the fake-SS
MOMMY is that U?
DOOM&GLOOM back page lackey-ss sellin garbage off the back of their truck still lost on their route to no where
AND they pre-pre-programed you into a fake news slave but it is all juist a movie they are making and you were never real just some film tracks and smoke
There is no emergency around here. What planet are they on.
They don`t like too walk mucho and don`t know how to ride a BUS!!-it gets dumb here real dumb!!!
MAYBE they should TRY O`PEC again? or just allow trump 2 talk2 puddin and CUT a deal!!!!!