Will the gas crisis translate into growth in oil demand?

In this interview given to Lubna Bouza from SkyNews Arabia, Dr Carole Nakhle, CEO of Crystol Energy, discusses the latest dynamics of the gas crisis in Europe.

Some of the main points covered during the interview:

1. Gas prices in Europe increased by seven folds since 2021 and with the current trend, the crisis could further escalate in winter. Gas consumption in Europe will either have to be reduced or replaced by alternative fuels to maintain the same levels of energy consumption.
2. Some of the alternatives of gas include fuel oil or diesel- the latter being in a tight market as Europe avoids Russian diesel.
3. A recession in Europe, due to previous policies adopted by the European governments, will probably lead to a reduction in gas consumption- irrespective of whether governments will take decisions to curb gas consumption.
4. Additionally, high gas prices will lead to demand destruction from one side and encourage new supplies to come to the market (as has been happening from North Africa, Norway and the Middle East).
5. European gas inventories are in a much better position than last year, with the aim to reach 95% before next winter. Even with such levels, inventories alone aren’t able to solve the gas crisis as this will also depend on the severity of the weather in the upcoming winter.
6. Governments around Europe should take drastic measures to shield the most economically vulnerable.