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EUROPE’S ENERGY CRISIS: HIGH STAKES FOR THE MENA REGION

Dicembre 9, 2022

EUROPE’S ENERGY CRISIS: HIGH STAKES FOR THE MENA REGION

The MED This Week newsletter provides expert analysis and informed insights on the most significant developments in the MENA region, bringing together unique opinions on the topic and reliable foresight on future scenarios. Today, we turn the spotlight on the increasing importance of the Mediterranean region for European energy security.

The Ukraine invasion upset already uncertain and volatile global energy markets. Whereas the Kremlin weaponised its natural gas supplies to Europe, leaving the bloc scrambling to find sufficient provision, EU members implemented eight packages of restrictive measures, including embargo on seaborne Russian oil imports which kick-started on Monday.

A day before, ministers from OPEC+ countries stressed the importance of sticking to production cuts, denying an output increase to counter the potential loss of Russian crude oil supplies. Their meeting comes as Europe’s “price cap” proved to be ephemeral, as currently Russia’s crude already sells below it ($54/barrel, vs the agreed $60/barrel cap). Within this context, the MENA region – with its many exporters of oil and gas – has become increasingly central to Europe’s energy security.