Europe is facing a new energy crisis driven by geopolitical instability. The European Commission expects high diesel prices to persist throughout 2027. This was stated by European Commissioner for Energy and Housing Dan Jørgensen at a press conference in Brussels on October 28, RBC-Ukraine reports.
Winter Will Be a Test for the Economy and Citizens
According to Jørgensen, the energy crisis will affect both the EU population and industry, and the upcoming winter could be particularly difficult due to rising energy costs. At the same time, he noted that in recent months energy markets have demonstrated resilience, and European refineries have played an important role in ensuring fuel supplies, including aviation fuel.
The Diesel Market Will Remain Tight
The European Commissioner named the situation on the global diesel fuel market as one of the key risks. According to him, the International Energy Agency warns that this market will remain tight for an extended period in 2027. A similar forecast was previously voiced by the American investment bank Goldman Sachs, which linked the persistence of high prices to limited refinery capacities and growing demand from governments and companies replenishing depleted fuel inventories.
Brussels Seeks Long-Term Solutions
The European Commissioner stressed that Europe needs to secure reliable fuel supplies for the population, business, and defense sector while maintaining affordable energy prices. According to him, the European Commission, together with member states and energy sector representatives, is working to mitigate the immediate impact of high prices while developing long-term mechanisms to reduce energy costs. Among the priorities are increasing fuel production at European facilities and developing biofuels, which, according to Brussels' calculations, will reduce import-related risks and strengthen the region's energy security.
The Issue of Strategic Gas Reserves
As a reminder, Politico previously reported that European Commission President Ursula von der Leyen proposed that EU leaders consider creating strategic gas reserves amid concerns over potential winter fuel shortages. According to the publication, European storage inventories have dropped to record lows this year.
