Will Middle East tensions trigger another energy price crisis in Europe?

Oil prices have continued on a downward trajectory, despite receiving some support on Thursday following the US Federal Reserve’s decision to cut interest rates half a point of its reference interest rate.

In addition, analysts and economists have been keeping an eye on growing tensions in Middle Eastwhich could also affect supply.

At the time of writing, Brent crude oil rose 1.2% to $74 (66 euros) per barrel, while the American WTI was quoted at an increase of 1.2%, around 71 dollars (63 euros) per barrel. However, both references have fallen by around 13% in the third quarter.

Energy analyst Yousef Alshammari said: There are several factors affecting the oil markets.but Europe is unlikely to suffer the price crisis of 2022 after the conflict between Russia and Ukraineas there are now more suppliers in the market.

Dr. Alshammari also shared his thoughts on What Europe needs to do to be more competitiveas it continues to grapple with high energy prices.

“The energy challenge is not new in Europe, but what we are seeing are some Overly ambitious climate targets. I think this has determined where investments in Europe are going to go… I think Europe needs to first establish realistic objectives for the energy transition“.

“Also We need to invest in energy securityand I am referring to gas and nuclear energy. Without natural gas and nuclear energy, I believe that energy security in Europe will remain volatile. Whether it is due to the dependence on Russia or by fluctuations in the price of oil,” he told Euronews Business.

Alshammari also noted that The third challenge is unity among Member States.