The current scenario in the energy sector, with high prices and shortages, has led the European Central Bank to take a more serious stance regarding possible measures if inflation in the region continues to rise.

Currently, there is considerable concern and mistrust due to rising fuel prices, shortages, and increased electricity prices as a consequence of the Iran conflict.

In this regard, the Governor of the Bank of France and member of the ECB Governing Council, François Villeroy de Galhau, stated that “the institution will do whatever is necessary to bring inflation back to the 2 % target in the medium term.”

Amid the escalating conflict in the Middle East, Eurozone inflation rose to 3 % in April, up from 2.6 % in March. “The increase coincided with a surge in energy prices, particularly gasoline, diesel, and jet fuel, which have skyrocketed in recent months.”

The ECB’s main concern is that the effects of the war will spill over into key sectors for each country, such as “wages, inflation expectations, and pricing across the economy—what is known in monetary policy as second-round effects.”

M.Pino

Source: diariobitcoin

(Reference image source: Guillaume Périgois on Unsplash)

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The OPEC+ decision to increase its crude oil supply again on May 1 will likely be largely symbolic, according to analysts, due to the difficulty of implementing it because of the Iran conflict.

In fact, the organization has been unable to implement the April 1 increase due to the conflict in the Middle East, generating concern in the global energy market.

The planned May increase of 206,000 barrels per day was agreed upon on Sunday, April 5, in a teleconference by the energy and oil ministers of Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria, and Oman.

The eight countries issued a statement regarding the attacks on energy infrastructure in the Middle East, noting that “restoring damaged energy assets to full capacity is costly and time-consuming, affecting the overall availability of supply.”

In addition, the signatories expressed their stance on actions against “the security of energy supply, whether through attacks on infrastructure or the disruption of international shipping routes,” which contribute to market volatility and “weaken the collective efforts of the oil alliance to stabilize the market.”

M.Pino

Source: rtve

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La entrada OPEC+ to increase crude oil supply in May apareció primero en Bitfinance.