site.btaEC Urges EU Member States to Coordinate Measures to Ensure Oil Supply Security

The European Commission (EC) Tuesday urged EU Member States to coordinate measures to ensure the security of oil supply amid developments in the Middle East. Considering the market volatility stemming from the conflict in the Middle East and the closure of the Strait of Hormuz, the Commission is calling on Member States to make timely and coordinated preparations, the EC said in a press release. 

The European Union is well prepared, thanks to the obligation on Member States to maintain oil stocks and to have contingency plans in response to security of supply incidents. EU Member States are also contributing - for approximately 20% - to the release of over 400 million barrels of emergency oil stocks coordinated by the International Energy Agency (IEA).

In a letter addressed to all EU Energy Ministers, EU Commissioner for Energy and Housing Dan Jorgensen urged the Member States to make full use of the meetings under the Oil Coordination Group and Energy Union Task Force Security to ensure good coordination, as well as to consider the promotion of demand saving measures, with particular attention to the transport sector, as advised by the IEA in its 10-points plan to cut oil use.

Robust monitoring, rapid information-sharing mechanisms and coordination remain essential. Any emergency risks or material changes in oil supply and industry conditions, including commercial stocks, should be tracked and notified to the Commission to ensure continuous assessment and coordinated action.

In the same spirit, Member States should refrain from taking measures that may increase fuel consumption, limit the free flow of petroleum products or disincentivize EU refinery output. They should also consult with their neighbouring Member States and the Commission to preserve EU-wide coherence and the functioning of the internal market.

To safeguard the availability of petroleum products on the EU market, any non-emergency refinery maintenance should be deferred. At the same time, increasing the uptake of biofuels could help substitute for fossil petroleum products and alleviate pressure on the market.

An informal video conference of EU energy ministers is scheduled to take place on Tuesday to discuss a coordinated EU response to the current energy situation.