The European Commission is said to have sent an email to EU governments, in noting that it sees no immediate impact on the bloc’s security of oil supply from the situation in the Middle East. That according to Reuters, who has glanced over the email details with it stating that:
“At this stage, we do not foresee an immediate oil SOS (security of supply) impact.”
That being said, the EU is considering to convene an ad-hoc meeting of its oil coordination group later this week. Adding that it has requested member states to share their oil security of supply assessments by the end of today.
Well, I would say that the situation is rather fluid at the moment. With all eyes still resting on how long the conflict may endure in the Middle East and also the prolonged impact on the Strait of Hormuz, it won’t be easy to assume or forecast anything.
So far, oil prices have still yet to reclaim the opening gap high with WTI crude seen up 7% on the day to $72.05 currently. The opening gap high saw it climb over 13% to above $75 before quickly retreating in Asia trading with the low earlier touching $69.43.
This article was written by Justin Low at investinglive.com.