Europe Didn’t Escape An Energy Crisis Just Yet

Europe Didn’t Escape An Energy Crisis Just Yet

Share to Linkedin European Commission President Ursula Van Der Leyen. So far, Europe has done better than expected in ... [+] dodging a severe energy crisis. Electricity costs are higher. And each country has its own set of energy woes. (Christian Hartmannn, Pool Photo via AP) So far, an energy crisis has been somewhat averted in Europe. But policy and political risk remain. Oil bulls shouldn't have a hard time forecasting energy prices to rise, thanks in part to the EU. Such policy risk, led by the price cap for Russian oil, "could trigger significant and abrupt changes of the broader market environment, which could impact the orderly functioning of markets, and ultimately financial stability," a Bloomberg article stated on Jan. 22. The price cap (known as the market correction mechanism) goes into effect on Feb. 15. For now, Brent crude oil, the price most quoted for European oil markets, has been in steady decline since Dec. 30. As has the all-important Dutch natural gas market. Robin Brooks, the chief economist for the Institute of International Finance, noted on Jan. 26 that falling prices are a mixed signal for Europe. There is still an "energy shock", if not a crisis,