Nomisma Energia warns of worsening oil shortages and price volatility

Davide Tabarelli, president and founder of Nomisma Energia, has warned that the energy situation is likely to worsen due to a fundamental lack of oil. He noted that the reduction in the use of the Saudi Arabian pipeline, which previously contributed to a 15 million barrel per day deficit, could return the market to an emergency management state.

Tabarelli suggested that while government interventions like social cards are appropriate, they must be targeted to avoid providing resources to wealthy households. He argued that the only effective way to contain demand is through price increases rather than price freezes. He cautioned that in an apocalyptic scenario, gasoline could reach 3 euros per liter, though he noted market uncertainty could also see prices drop to between 1.60 and 1.70 euros.