Oil prices have been on a downward trajectory, despite gaining some price support on Thursday (19 September) following the US Federal Reserve's decision to cut its benchmark interest rate by a half-point.
Moreover, analysts and economists have been monitoring rising tensions in the Middle East that could also impact supply.
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At the time of writing, Brent crude was up 1.2% at $74 (€66) a barrel, while US WTI was trading up 1.2% at around $71 (€63) a barrel. However, both benchmarks have fallen about 13% in the third quarter.
Energy analyst, Dr Yousef Alshammari, said there are various factors impacting oil markets but said Europe is unlikely to see the price shock witnessed in 2022 after the Russia-Ukraine conflict began as there are more suppliers in the market now.
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Dr Alshammari also shared his thoughts on what Europe needs to do to make itself more competitive as it continues to grapple with high energy prices.
"The energy challenge is not new to Europe but what we are seeing is over ambitious climate targets. I believe this has driven where the investments are going to go in Europe...I believe Europe needs to first set realistic targets to the energy transition.
"We also need to invest in the security of energy - here I mean gas and nuclear. Without natural gas and nuclear, I believe energy security in Europe will continue to be volatile. Whether it is dependence on Russia or fluctuations in oil prices," he told Euronews Business.
Dr Alshammari also said the third challenge is unity among member states.
Watch the full interview above.
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