Russian energy giant Gazprom will suspend natural gas deliveries to Armenia from September 15 to 25 for scheduled pipeline repairs. Simultaneously, European gas spot prices surpassed $1,000 per thousand cubic meters for the first time since December 2022, while Brent crude spiked near $108 per barrel as oil reserves at Saudi Arabia’s Yanbu port fell.
Global market
Oman Energy Minister Salim Al-Aufi called for alternative Middle East LNG export routes bypassing the Strait of Hormuz at the Gastech conference in Thailand. Global benchmark Brent crude surged to $108.2 per barrel before settling near $106.8 per barrel, driven by supply fears following the East-West pipeline shutdown in Saudi Arabia. Industry sources reported that oil reserves at Saudi Arabia’s Yanbu port on the Red Sea have fallen to just 5 to 7 days of supply. According to the International Energy Agency (IEA), global refining throughput dropped by 4.2 million barrels per day in August. Consequently, 90% of traders expect a 25-basis-point interest rate hike by the US Federal Reserve.
Russia & CIS
European natural gas futures on the London ICE exchange exceeded $1,000 per 1,000 cubic meters for the first time since December 2022, reaching $1,004 per 1,000 cubic meters on the TTF hub. Japanese analyst Matsuo estimated that repairs to Saudi Arabia’s damaged pipeline could take 1.5 months, while Kasatkin Consulting partner Dmitry Kasatkin warned crude prices could reach $150 per barrel. Black Sea Aframax tanker freight rates for Russian crude rose to $23.2 to $25.7 per barrel, according to the Center for Price Indices. In nuclear development, Rosatom subsidiary TVEL completed the first concrete pouring phase for the BREST-OD-300 reactor vessel.
Armenia
Gazprom Armenia announced that Russian gas deliveries via the North Caucasus–Transcaucasia pipeline will be suspended from September 15 to 25 for planned maintenance. Sputnik Armenia reported that uninterrupted domestic gas supply will be maintained using internal reserves and supplemental imports from Iran. Economist Suren Parsyan noted that potential increases in Russian import prices impact end-user tariffs due to grid maintenance costs. Despite European gas prices exceeding $1,000 and global market instability, retail petrol, diesel, and natural gas prices in Armenia remain stable. Energy security is preserved under long-term trade agreements within the EAEU, protecting consumers from price volatility recorded by international market price assessments.