The European Union (EU) has confirmed there are no supply problems regarding crude oil and oil products in the region, amid the ongoing Middle East crisis. <\/p>\n
This news comes after experts from the European Commission<\/a>, EU countries, the International Energy Agency (IEA<\/a>), and NATO met last week to discuss the state of oil supply security in Europe.<\/p>\n Demand for crude oil and oil products in Europe can continue to be met through commercial stocks and alternative supplies from global markets. However, the European Commission says the duration of the conflict in the Middle East could have an impact in the coming weeks and months and further tighten the markets. <\/p>\n The commission is continuing to assess the overall impact of the situation in the Middle East on Europe, support coordinated action as needed, and maintain regular communication with EU countries, the IEA, and market participants.<\/p>\n As previously reported<\/a>, cargo volumes passing through the Strait of Hormuz remain at about 10% of pre-war levels. The IEA reports that the current energy shock is worse than the energy crises of the 1970s and 2022 combined.<\/p>\n Robert Bradshaw, a partner at the law firm LALIVE<\/a>, told this news service that while consumers are \u201cfeeling the pinch at the pump\u201d, the impact of the crisis extends beyond energy. <\/p>\n \u201cThe Strait of Hormuz is also a chokepoint for petrochemicals, sulphur, and other industrial materials that are critical to mining,\u201d Bradshaw says.<\/p>\n \u201cThat may be diesel in order to power heavy machinery and vehicles, sulphuric acid used in leaching minerals such as battery metals and uranium, and ammonia used to create explosives for blasting.\u201d<\/p>\n Mining companies face the risk of disputes over contractual non-performance, interrupted operations, and cost inflation. This means that even if the deadlock between the US and Iran is resolved, the impact on supply chains is likely to continue for months. <\/p>\n Influencing mining<\/p>\n Black Canyon<\/a> (ASX:BCA) Managing Director Brendan Cummins told this news service earlier this year<\/a> that the Middle East crisis strongly influences the mining sector, with costs rising and operations negatively impacted.<\/p>\n \u201cFrom an exploration perspective, we are seeing the impact of increased drilling costs due to high-cost diesel,\u201d Cummins said. <\/p>\n \u201cOur budgets are stressed and, in some cases, I have heard drill programs being cancelled, but in most cases, [drilling] reduced in scope. Even if the war in Iran ends soon, the fuel shortages will take several months to normalise.\u201d<\/p>\n As of 24 July, crude oil slipped toward US$89 ($127) per barrel but remained up by around 10% for the week, as reported by Trading Economics<\/a>. This news comes amid traders continuing to assess mounting geopolitical risks to global energy supplies.<\/p>\n The US launched a 13th straight day of strikes on Iran, with both sides ruling out near-term talks. US President Donald Trump also threatened \u2018major military punishment\u2019 against Iran and the Houthis over any further attacks on Red Sea shipping and said he was considering a \u2018massive attack\u2019 on Iran.<\/p>\n Trading Economics reports that Trump\u2019s remarks followed attacks by Iran-backed Houthi militants on two Saudi oil tankers in the Red Sea \u2014 a key alternative export route for Saudi Arabia as fighting continues to disrupt traffic through the Strait of Hormuz.<\/p>\n Write to Aaliyah Rogan<\/a> at Mining.com.au<\/a><\/p>\n Images: European Commission<\/p>\n Add to Watch List:Black CanyonTrading EconomicsEuropean Commission<\/p>\n","protected":false},"excerpt":{"rendered":"The European Union (EU) has confirmed there are no supply problems regarding crude oil and oil products in…\n","protected":false},"author":2,"featured_media":103409,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2385],"tags":[66,88,39,4,256,128,30,1501,510,920,5496],"class_list":["post-103408","post","type-post","status-publish","format-standard","has-post-thumbnail","category-european-commission","tag-donald-trump","tag-energy","tag-eu","tag-europe","tag-european-commission","tag-markets","tag-middle-east","tag-mining-news","tag-oil","tag-strait-of-hormuz","tag-supply-security"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts\/103408","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/comments?post=103408"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/posts\/103408\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/media\/103409"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/media?parent=103408"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/categories?post=103408"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/europe\/wp-json\/wp\/v2\/tags?post=103408"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}