File photo: A Russian oil rig in the Caspian Sea Image: Alamy Stock Photo File photo: A Russian oil rig in the Caspian Sea Image: Alamy Stock Photo EUROPE IS ALSO likely to suffer as a result of the barrage of economic sanctions it has fired Russia’s way in recent days — “but that’s a sacrifice the EU is willing to make”.Sacrifices are certainly on the cards for European households after the latest Eurozone inflation figures were released yesterday.
With Russia’s war in Ukraine in full flight, there appears to be no relief in sight from sky-high energy bills. Russian energy markets are also in a state of upheaval at the moment with ExxonMobil announcing plans to exit the country and oil major BP announcing its decision to offload its stake in Russian energy giant Rosneft.So there is a huge degree of uncertainty about the future of Russian oil exports at the moment and more demand for alternatives.
Like oil, the conflict in Ukraine hasn’t drastically curbed flows of gas from Russia to Europe or certainly not to any great extent. Analysts widely expect that Russia will keep sending gas to Europe via pipelines like Nord Stream and the Yamal Russia-Europe line. Markets hate uncertainty. The possibility that flows could be cut short because of Russian government intervention or, say, because of damage to pipelines as a result of the conflict is also being factored in.For gas, not very reliant in a direct sense.
In reality, Ireland is just an extension of the British wholesale gas market, explains Muireann Lynch, an energy economist and Senior Research Officer with the Economic and Social Research Institute. “The diversity of supply in recent years reflects a well-supplied and increasingly competitive oil product market.”As Lynch said, there are really two issues around security when we talk about energy shocks: “physical security” and “price security”.
#Open journalism No news is bad news Support The Journal Your contributions will help us continue to deliver the stories that are important to youThat means if there’s a supply shock — or the anticipation of a shock — countries will be scrambling to find alternative suppliers, which puts further upward pressure on supply and prices.
That means prices are more likely to remain volatile and subject to upward pressure so long as the conflict continues, eventually trickling down into higher household bills and car fuel prices. In the event that Russia does, turn off the pipelines, and there’s an actual physical security issue, then there are EU treaties in place — there are also treaties in place between Ireland and Britain that survived Brexit — which essentially mandate equal sharing of gas.
Which will increase cost of delivery of food to shops. So we can expect to pay more for it also.
anyone who thought for a second that ALL OUR PRICES would NOT be going UP as a result of FAILED DIPLOMACY is DELUDED Yes what is happening is a complete tragedy But also it could have been averted with DIPLOMACY. WHAT DO YOU THINK KEPT US SAFE SINCE THE CUBAN MISSILE CRISIS 1962
Price gouging at its finest!
Hang on we don't import much oil form Russia So why the rise at the pumps ?
Not a great situation for Ireland .. but not the worst either oilandgas