Norway's energy minister says the country will proceed with oil and gas drilling in the Arctic's Barents Sea regardless of the European Union's stance. The announcement lands as Brent and WTI crude trade through another volatile stretch tied to Strait of Hormuz risk.
Norway defies EU pressure on Arctic drilling
Energy Minister Terje Aasland said on August 24 that Norway will develop oil and gas resources in the Barents Sea regardless of the European Union's position, speaking ahead of the ONS energy conference in Stavanger. He added that Norway would proceed with development first, leaving it up to the EU to decide whether to impose a moratorium on buying the resulting gas or oil.
Norway currently supplies roughly 30% of the natural gas consumed by the EU and the UK. In 2025, Norwegian oil output reached its highest level since 2009. Its petroleum strategy depends on holding production steady through at least 2035, though forecasts show a decline setting in after 2030 without new Barents Sea discoveries.
EU reconsiders its own Arctic stance
The EU adopted a moratorium stance on new Arctic hydrocarbon projects in 2021, rooted in environmental and climate commitments. Russia's 2022 invasion of Ukraine then turned Norway into the bloc's most important gas supplier, and in 2026 the EU began a formal review of its Arctic strategy.
Equinor CEO Anders Opedal has said Barents Sea oil and LNG can be sold globally if Europe declines to buy it. International Energy Agency Executive Director Fatih Birol has also called for reconsidering the moratorium given energy-security needs.
Oil markets stay volatile on Hormuz risk
The Norwegian announcement lands as crude oil trades through another turbulent stretch. Brent futures traded between $79.5 and $100.7 a barrel between July 20 and August 19, analysts at BMI, a unit of Fitch Solutions, said in a report.
BMI said trading has stayed broadly in line with its expectations, but continued failure to reach a deal on reopening the Strait of Hormuz poses upside risk to its outlook. According to the analysts: "retain a 35 percent probability of a wider escalation" and a return to high-intensity warfare that could damage regional oil infrastructure.
Oil fell roughly 1.5% to 1.6% on Monday morning as traders took profits and reassessed the Middle East risk premium, Zaye Capital Markets CIO Naeem Aslam said. Saxo Bank separately said crude slipped as traders awaited details of the U.S. plan to increase economic pressure on Iran, with Treasury Secretary Scott Bessent expected to unveil the measures. Brent eased toward $93 after gaining about 13% over the prior two weeks. WTI traded near $86.
BMI's current forecast puts Dated Brent's 2026 annual average at $86 a barrel, though the firm said it plans to review that outlook by the end of August.
Sources: Crypto Briefing, Rigzone.com: Latest News Headlines
Trading involves risk.
Risk Disclaimer
