Global oil prices surged past $100 per barrel as Iranian threats to enforce a maritime exclusion zone in the Persian Gulf deepened supply anxieties. The ongoing escalation is squeezing Asian refiners while European natural gas prices reached new multi-year highs.
Global market
Brent crude breached $100.12 per barrel for the first time since July 24 as escalating Middle Eastern conflict crushed hopes for diplomatic talks, while WTI crude rose 1.80%. Rising global crude prices and dwindling supplies from Iran and Venezuela are forcing China’s independent ‘teapot’ refiners to cut processing rates, according to Energy Aspects analysts. To mitigate regional shortages, Pakistan expects its first Qatari LNG cargo on Thursday, breaking a supply pause after Qatar declared force majeure following Iranian strikes on its Ras Laffan hub. Meanwhile, Singapore bunker fuel availability remains tightly constrained, with VLSFO lead times stretching to 12-15 days.
Russia & CIS
European natural gas prices surged above $950 per 1,000 cubic meters for the first time since December 2022 due to record-low storage levels before winter. According to Russia’s Ministry of Finance, Russian oil and gas budget revenues fell 16.7% year-on-year in January–August to 5 trillion rubles, even as non-oil and gas revenues expanded 18.1% to 20.91 trillion rubles. On the operational front, Ukrainian drones struck a fuel oil terminal in Novorossiysk, Russia’s largest commercial port. In Moscow, law enforcement arrested the chairman of petrol station operator Trassa in connection with an ongoing fuel embezzlement investigation involving police leadership.
Armenia
Armenia plans to extend the operational lifespan of the Armenian Nuclear Power Plant (ANPP) to 2041, ANPP Director General Eduard Martirosyan announced. Following a major five-month overhaul that fully replaced the plant’s cooling system and high-voltage switchgear, the station will undergo a significantly shorter 55-day maintenance outage in 2027. Martirosyan also dismissed safety concerns raised by Azerbaijan regarding the plant’s modernization. Despite global commodity volatility, Armenia’s retail fuel and gas prices remain stable under bilateral EAEU agreements, protecting domestic consumers from price spikes tracked by international market price assessments.