The European Union is considering measures to address surging energy prices, including a potential cap on natural gas prices. This consideration follows significant increases in commodity prices, which have been further impacted by recent US attacks on Iran. Since the outbreak of the war, European gas prices have risen by almost 70%, prompting governments to seek urgent responses.

Opposition from a Key Supplier

Norwegian Prime Minister Jonas Gahr Stoere has rejected the EU's plans for a gas price cap. Norway is Europe's primary pipeline gas supplier. The Prime Minister argued that a price cap would not solve the underlying challenge, stating it would increase demand during a period of already shrinking supply.

Supply Constraints

Supporting this position, Anders Opedal, CEO of the Norwegian energy major Equinor, confirmed that Norway's gas supply to Europe is already at maximum capacity and cannot be substantially increased. This highlights a critical physical limitation in the market.

Coordinated Response Efforts

In light of these developments, the EU's oil and gas supply coordination groups were scheduled to meet in Brussels to discuss a collective response to the soaring prices of both crude oil and natural gas.