Europe could enter a fuel crisis as early as April if the Strait of Hormuz is not reopened, warned Shell’s executive director, Wael Sawan.
The head of Europe’s largest oil company stated that he is working with governments to help them manage the oil and gas supply crisis, which has already led to energy rationing in some Asian countries, according to The Guardian.
The price of oil dropped on Wednesday to about $100 per barrel, from a peak of around $114 at the beginning of the week, amid information that the White House had sent a 15-point peace plan to Iranian leaders.
However, in the absence of the resumption of crude oil deliveries from the Gulf to global buyers through the essential maritime route of Hormuz, Europe could face shortages of fossil fuels in just a few weeks, according to Wael Sawan.
The Shell director stated at a major oil industry conference in Texas: “South Asia was the first hit. Then the impact spread to Southeast Asia, Northeast Asia and, as we approach April, increasingly to Europe”.
Sawan explained that this crisis, now in its fourth week, has already affected the fuel supply for airplanes – whose price has doubled since the beginning of the conflict – and diesel could be the next affected, followed by gasoline, with the onset of the summer travel season in the US and Europe.
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