BRUSSELS, Sept 11: The European Commission adopted on Wednesday two directives designed to provide a coordinated response in case of speculative attacks on oil and gas markets, in part through increased strategic stocks.

A year to the day after terrorist attacks on the United States, European Energy and Transport Commissioner Loyola de Palacio cited “geopolitical uncertainty” as a threat to the security of the European Union’s energy supply.

“It is crucial to have effective mechanisms that will provide Europeans with a better guarantee of constant access to energy at reasonable prices,” de Palacio said in a statement.

If the European Parliament and the 15 member states of the European Union adopt the directives, the EU states would be obliged to expand strategic oil stocks to cover 120 days of consumption, from the current level of 90.

Market intervention backed by these stocks would be decided by the Commission with the assistance of experts from member countries.

Intervention could take place once oil prices reached a level that would swell the EU’s aggregate oil bill by 0.5pc of gross domestic product, or around $30 a barrel currently.—AFP