EU warns of energy 'price crisis,' asks countries to consider curbing demand

EU warns of energy 'price crisis,' asks countries to consider curbing demand

The European Union is facing an energy price crisis as a result of the Iran war fallout in oil and gas markets, the bloc's energy chief said on Friday in a letter seen by Reuters, which urged countries to consider measures to curb energy demand.

"We are facing a price crisis linking to a supply crisis," EU energy commissioner Dan Jorgensen said in a letter to EU countries' energy ministers.

While the EU is better prepared now than it was in winter 2021 when Russia squeezed Europe's gas supplies by reducing deliveries, governments must step up preparations for this winter, he said.

"I invite you to consider taking or continuing to take measures that can sustain [gas storage] injections or reduce gas and electricity demand for as long as necessary," Jorgensen said.