EU oil import costs skyrocketing economic recovery

The transaction price of crude oil continued to be maintained at more than US$100/barrel, resulting in the EU’s cost of importing oil has soared by more than US$400 billion. The International Energy Agency has warned that this will affect the economy of the euro zone. Fatih Birol, chief economist of the energy regulatory agency, said: "High oil prices add an extra burden to efforts to restore the economy." He also said: "If oil prices continue to stay at this level in the coming months, it is likely that Will stifle economic recovery."

According to BP's statistics, this year may be the first time that the average annual oil price is above $100 per barrel. After deducting price factors, this is the highest annual average price since 1864. Economists said that strong demand, especially from emerging market economies and supply disruptions caused by supply disruptions in the Middle East and North Africa, together support current prices. At the same time, "the production of crude oil in non-OPEC countries, including Brazil, is very disappointing." This has exacerbated the situation of supply shortages, according to Jeff Riccoli, head of global commodities research at Goldman Sachs. Curry analysis: "Commodity markets are no longer dependent on the United States and Europe, but are more dependent on economic growth in emerging market countries such as China."

Birol said that in the medium term, the EU faces special risks due to high oil prices. The cost of EU crude oil imports has jumped from 280 billion U.S. dollars in 2010 to 402 billion U.S. dollars this year, affecting the overall energy security of the EU.

Thanks to the increasing domestic supply, US crude oil imports have begun to decline, and crude oil has become a major problem for others. The International Energy Agency predicts that in 2015 the EU will surpass the United States as the largest importer of oil. By 2020, Europe is expected to be overtaken by China again.

Birol believes: "The stability of the global oil market will remain a major U.S. interest, and the EU and China will be placed at the forefront of oil security."

In December OPEC will meet in Vienna, but the Organization of Petroleum Exporting Countries has stated that there is no need to increase its production. In this summer, OPEC members failed to reach agreement on increasing oil production. In order to help the economy recover, the International Energy Agency subsequently released a number of contingent reserves to supplement the oil production losses caused by Libya’s war.

In an oil market monthly report in early November, the International Energy Agency said that supply and demand fundamentals support "high oil prices." In the same month, in the "World Energy Outlook", it stated that by 2035, over 90% of the new oil production will come from Middle East and North Africa - "If between 2011 and 2015, the Middle East and North Africa The investment is now reduced by one-third of the 100 billion U.S. dollars it now needs to operate. Consumers may face oil prices that rise to 150 U.S. dollars per barrel in a short period of time."