Greek MEP and energy law professor Nikolaos Farantouris has reassured markets, saying that a prolonged surge in international oil prices is unlikely, despite recent volatility.
In a recent interview, Farantouris highlighted five factors stabilizing global energy markets:
- U.S. President Trump’s decision to grant a one-month waiver on sanctions for Russian oil, allowing normal deliveries to India and other Asian markets.
- Increased U.S. shale oil and gas production, without tapping into strategic reserves.
- U.S. control of Venezuelan oil exports since January, mainly directed to U.S. refineries familiar with Gulf of Mexico crude.
- OPEC countries, including major producers like Nigeria, agreeing to raise output.
- U.S. Energy Secretary Chris Wright’s statement confirming the U.S. will not target Iranian oil facilities.
Farantouris noted that these factors are likely to prevent a significant price escalation over an extended period, countering “apocalyptic” predictions of $150 per barrel. He also mentioned that upcoming U.S. midterm elections provide political incentive to keep domestic fuel prices low.
Addressing recent rapid increases in pump prices and supermarket goods, Farantouris warned that these spikes, sometimes exceeding €2, are unjustified and often the result of profiteering, urging government and regulatory authorities to remain vigilant.
