Europe could face a shortage of energy and fuel as soon as next month without a reopening of the Strait of Hormuz, Shell’s chief executive has warned. Wael Sawan said the crisis, now in its fourth week, had already affected supplies of jet fuel, with diesel and petrol likely to come under pressure next.
Speaking at an oil industry conference in Texas, Sawan noted that South Asia was first to feel the impact, followed by southeast Asia, northeast Asia, and now Europe as April approaches. He cautioned that diesel could be affected next, followed by petrol as the summer driving season begins in the US and Europe.
Germany’s economy minister, Katherina Reiche, echoed the warning, telling the same conference that energy supply scarcity could occur in late April or May if the conflict continued. She added that Germany’s decision to phase out nuclear energy was a huge mistake and that greater imports of gas via super-chilled tankers would be part of the solution.
The looming threat to Europe’s energy supplies could lead to prolonged global economic recession if oil hits $150 a barrel, according to Larry Fink, boss of BlackRock. In an interview with the BBC, Fink outlined two scenarios: one where oil returns to pre-crisis levels of about $70 a barrel, and another where prices reach record highs, causing a “stark and steep recession”.
A British government spokesperson said: “The UK has diverse and resilient energy supply. We continue to work with partners on the international situation.”
