The Economy Minister admitted this Monday, March 2, that the increase in oil prices is “not good news” and guaranteed that the executive will, if necessary, take appropriate measures to make the economy work.
“It is clear that the increase in the price of oil is not good news”, said Manuel Castro Almeida, adding however that “Portugal today resists the increase in the price of oil much better than in the past.
On the sidelines of a meeting in Faro of the Regional Council of the Algarve Development Coordination Commission (CCDR), the government official recalled that 70% of the electricity consumed in Portugal comes from renewable sources and, therefore, is “less dependent on oil, which is a competitive advantage for Portugal”.
For Manuel Castro Almeida, the executive “will always be attentive and the Government’s obligation is to be attentive to take, at each moment, appropriate measures to ensure that the economy works, that people have living conditions and that public finances can be balanced”.
Brent oil prices increased this Monday, following the US and Israeli attack on Iran and its repercussions in the Middle East.
The suspension of transit through the Strait of Hormuz – which separates Iran, to the north, from the Emirates and Oman, to the south, just 30 kilometers away – will have an impact on oil prices, which could exceed $100 per barrel, but the effects depend on the duration of the closure and whether the conflict spreads, analysts consider.
“We have important reserves that I hope will last beyond the time that is announced and the time that this war will last. At the moment, there is nothing to fear in this regard”, said the Minister of Economy and Territorial Cohesion.
Castro Almeida ruled out the possibility, at this time, of a budget review caused by the impact of bad weather on the economy and the consequences of a possible increase in fuel prices.
“At this moment it is too early to take a position on this. If it is necessary it will be done, if it is not necessary it will not be done. At the moment there are no indicators that allow us to make a decision now, but it will be reevaluated later and we will see later whether it is necessary or not”, he said.
The European Commission had also guaranteed today that it had no “immediate concerns” regarding the security of energy supply to the European Union (EU), despite the impact of the conflict in the Middle East on the Strait of Hormuz, through which 20% of the world’s oil passes.
Israel and the United States launched a military attack against Iran on Saturday, to “eliminate imminent threats from the Iranian regime”, and Tehran responded with missiles and drones against US bases in the region and Israeli targets.
US President Donald Trump stated that the operation aims to “eliminate imminent threats” from Iran and Israeli Prime Minister Benjamin Netanyahu justified joint action against what he classified as an “existential threat”.
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