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EU Says No Immediate Gas Supply Risk Despite Middle East Tensions

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The European Commission said Thursday there is no immediate risk to Europe's gas supply ahead of the upcoming winter, despite the ongoing conflict in the Middle East, but cautioned that oil markets could tighten if disruptions persist.

The Commission said Europe's Gas Coordination Group saw no immediate concern for the security of gas supply in the region for the next winter season.

The group said that the European Union's gas storage levels could reach about 80% by the end of the summer, a level considered sufficient to secure supplies for winter 2026/27.

The EU executive body said that progress in storage filling should continue to be closely monitored in light of evolving market conditions, while noting that no member state has so far planned additional market interventions.

Meanwhile, the Oil Coordination Group said the effective closure of the Strait of Hormuz is affecting both crude oil and refined petroleum products, with all EU countries exposed to the resulting market dynamics.

Though there have been price effects, the group said there have been no physical supply disruptions at the consumer level so far. However, it warned that if the situation does not improve in the coming weeks, markets are expected to tighten further, particularly for jet fuel.

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