Europe is in the midst of a profound and complex energy crisis. This is not limited to the gas sector as a result of Russia’s invasion of Ukraine but involves all energy sources. French nuclear generation, for example, has fallen to a thirty-year low over the past year due to maintenance works and corrosion. Due to extreme heat over summer, unprecedented drought has reduced hydropower generation as well as the possibility to import coal by river. Oil has not been immune to turbulences either. The EU embargo on Russian crude oil finally began on 5 December 2022, coupled with a price cap at 60 US dollars/barrel generating uncertainty over future supply and prices. In February 2023, the second step of the embargo, on refined products, will kick in, with diesel potentially becoming the next chapter of the European energy crisis.
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