Authored by Felicity Bradstock via OilPrice,
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Europe faces another expensive winter as low gas reserves and Middle East disruptions drive up energy prices.
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Rising fuel costs threaten household budgets, industrial production, and employment across Europe.
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Increased U.S. LNG supplies could provide some relief, but continued geopolitical risks leave energy markets vulnerable.
After months of elevated energy prices, Europe can expect fuel costs to continue rising through the winter months as demand grows. Ongoing energy trade constraints and threats to energy infrastructure across the Middle East are expected to limit global energy supplies and continue to drive up prices, hitting consumers hard unless governments intervene.
The European Union (EU) is thought to have paid an additional €100 billion on oil and gas so far this year, prompting EU ministers to seek ways to manage the impact of high fuel prices. Since 2022, the extra costs of energy have surpassed €900 billion, even as total demand has fallen. The price of natural gas in Europe has more than doubled since the outbreak of the U.S.-Israeli-led war in Iran. This winter could be the most challenging in terms of energy supplies
