Monika Schnitzer, the chair of the economic think‑tank, warns that oil and gas prices are likely to remain high and could rise further in the coming days. She added that the scale of any increase will depend on the intensity and duration of the conflict. “With production facilities destroyed, transport routes heavily restricted and oil and gas firms in the affected area withdrawing from the market for safety reasons, the global supply is constrained. This creates uncertainty and pushes prices up” she said to the “Rheinische Post” on Tuesday.
Schnitzer urges a fresh look at the global oil reserve established by the International Energy Agency in the wake of the oil crisis. “The IEA’s strategic reserve has been used several times in recent years to boost supply quickly and stabilize prices during crises” she noted. “It would be sensible to revisit this option now and, if necessary, deploy it in a coordinated manner”.
At the same time, she calls on Germany to reduce its dependence on oil. “When oil and gas prices are high, it makes sense to cut consumption whenever possible” she said. “Policymakers should also pursue greater independence from fossil imports, especially by expanding renewable energy sources and upgrading the required grid infrastructure”.