The UK is poised to approve major North Sea gas developments to combat soaring energy costs as Brent crude hovers near 96 dollars per barrel. This shift comes as China eclipses OPEC in stabilizing global oil markets, while Armenia faces growing Western pressure to restrict ties with Russia.
Global market
UK Prime Minister Andy Burnham is expected to approve the Jackdaw gas field in the North Sea by late September as soaring fuel bills reshape priorities. This move coincides with Brent crude trading at $95.55 per barrel and WTI at $91.53 after direct US-Iran missile strikes and Israeli threats to cripple Iranian energy assets. Despite maritime risks, UAE’s state-owned ADNOC continued loading LNG at Das Island in dark mode with vessel transponders deactivated. Global logistics face further stress as the Intra-Asia Container Index rose 9% to $1,312 due to Typhoon Saudel, while heavy distillate stocks at Fujairah fell to a two-month low.
Russia & CIS
China has taken over OPEC’s role in stabilizing oil markets, Rosneft CEO Igor Sechin stated, noting that Beijing’s import cuts of 5.5 million barrels per day prevented a $30 price spike. Russia remains China’s top supplier, with shipments up 25% to 67 million tons in seven months, capturing a 23% import share. Russian Vice-Prime Minister Alexander Novak predicted China’s share of Russian gas exports will exceed 60% by 2030. To cap domestic retail prices, the Federal Antimonopoly Service signed supply agreements with 12 oil companies, while First Deputy Prime Minister Denis Manturov confirmed rebuilding plans for drone-damaged refineries.
Armenia
Yerevan is facing intense European pressure to establish a visa regime with Russia, according to a report by Graparak newspaper. This Western diplomatic push coincides with the EU funding a business delegation of 150 Turkish businessmen to Armenia, covering all expenses. Regional security risks also intensified after Ukrainian drone strikes hit an oil depot and air defense division near Sochi, reminding Yerevan of its supply chain vulnerabilities. For now, domestic gas and fuel prices remain stable under EAEU agreements securing duty-free Russian gas imports at fixed rates, shielding consumers from volatile international market price assessments.