Vujcic Says Energy Prices Align With ECB Basic Scenario
Boris Vujcic says energy prices align with the ECB basic scenario. He noted Europe is more resilient to shocks now than in 2022 despite Middle East tensions.
The European Central Bank’s vice president, Boris Vujcic, stated on Monday that current energy prices remain closely aligned with the bank’s baseline economic scenario. Speaking at a financial forum in Croatia, Vujcic noted that these price levels are unlikely to disrupt the current trajectory of inflation or economic growth, according to a report by N1 regional television.
Vujcic highlighted that the European energy system has developed greater resilience to supply shocks compared to the period following the 2022 invasion of Ukraine by Russia. He credited this improved stability to the successful diversification of energy sources across the continent.
"We are not in an unfavorable and even less so in a very unfavorable scenario, either with regards to oil or with regards to gas, and that is good news."
Despite ongoing geopolitical tensions in the Middle East, Vujcic observed that the current energy shock remains relatively weak. This is partly attributed to a two-week ceasefire in the conflict between the United States and Iran. However, he warned that the market for Brent Crude Oil and Natural Gas could face significant pressure if hostilities escalate further.
