Oil price fall: US crude takes a hit as Norway offers solution to European shortage
Gas prices surging due to potential Russian invasion of Ukraine
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This was a slight increase compared to Thursday, which saw a low of $91.08. However, it is part of a general downward trend in oil prices from a peak of $94.65 on Wednesday.
It comes as Norway has offered a possible solution to the European energy shortage.
European supply has been affected by the political instability and diplomatic row between Russia and Ukraine.
There are concerns that a full-scale conflict could worsen supply issues and push prices up even more.
Parts of Europe, including Germany, are increasingly reliant on Russia for its gas supply.
This is something that is likely to be exacerbated by the forthcoming Nord Stream 2 gas pipeline linking Russia and Germany.
Norway’s Equinox has offered a potential short-term solution to the European gas woes.
They have promised to maintain maximum natural gas production throughout the spring and summer to help EU countries with their supply issues.
It should ensure that they are able to fill their gas storage facilities.
Many European countries have become over-reliant on Russian gas supplies.
This has led to complacency and a lack of forward planning.
According to Eurostat, the EU imported 46.8 percent of its natural gas from Russia in the first half 2021.
This compares with 20.5 percent from Norway during the same period.
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Norway will not be able to supply the amount of gas that Russia does.
This is especially the case for Germany as it is in the process of closing down its coal and nuclear industries eliminating other sources of energy supply.
However, with the exception of Central Asia, more specifically Azerbaijan, Europe doesn’t seem to have many other options.
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