EU Officials Held Emergency Meeting on Diversifying Oil Stocks

EU officials held an emergency meeting on Friday in which they discussed to diversify oil stocks and to create a buffer for diesel and gasoil, amid potential supply risks in case of an escalation in the conflict on the Middle East, one official told Reuters.

• European oil stocks are currently meeting a 90-day requirement, the official said. Inventories are mostly crude and Europe is vulnerable in diesel and gasoil stockpiles, the official added. According to an EU directive, member states must have emergency oil stocks equivalent to 90 days of net imports, or 61 days of consumption.
• Gasoil stocks in the ARA region stood last at 1.750mn t as of 26 October, well below the seasonal norm of 2.361mn t, according to Insights Global data.
• "Oil is important. Not enough diesel could lead to strikes. We don't want our trucks queuing for diesel," the official said, adding: "Is this a 1973 moment or not?"
• The meeting, called by EU Commissioner for Energy Kadri Simson, concluded that the risks is smaller than during the events of 1973 and Europe only relies on oil for around 30% of its energy mix, with Saudi Arabia one of its main suppliers, the official added.
• "A possible crisis would have an immediate impact on price but it's less of a security of supply risk, though the market is very tight because of OPEC+ cuts, tightness should ease in 2024," the official added.
• "The message was to have a more diversified composition of stocks and a buffer for diesel and gasoil," the official said.
• "The continued crude oil export cuts by OPEC and Russia, the conflict in Azerbaijan, and the Hamas attacks on Israel and its potential spill-over into the region are putting global oil supplies at risk," Kadri Simson said.