Saudi Arabia pivoted to selling spot crude after pipeline shutdowns, driving Middle East oil prices past $130 per barrel for the first time since March. Simultaneously, Kazakhstan secured an 11 billion cubic meter gas supply deal with Gazprom, while Armenia announced plans to diversify gas imports by considering purchases from Azerbaijan and Iran.
Global market
Middle East crude prices surged past $130 per barrel for the first time since March as regional geopolitical conflict disrupted shipping flows, TASS reported. Saudi Arabia pivoted to selling up to 20 million barrels of spot crude loaded outside the Strait of Hormuz after pipeline closures, prompting Japanese refiners to rush for Oman crude cargoes. Concurrently, US authorities launched cyber attack investigations into foreign-flagged tankers transiting the Strait of Gibraltar bound for Texas ports, according to the US Coast Guard. In utility markets, Japanese power producer JERA announced plans to sell excess LNG on global markets. Meanwhile, fuel shortages affected nearly 10% of petrol stations in France due to supply bottlenecks.
Russia & CIS
Kazakhstan agreed to purchase 11 billion cubic meters of natural gas from Gazprom in 2026 under a newly signed contract addendum. On the domestic retail front, petrol stations in Arkhangelsk began offering high-octane AI-98 fuel as a temporary alternative to AI-95 due to local supply tightness, noted Regional Governor Alexander Tsybulsky. In industrial policy, Russian Industry and Trade Minister Anton Alikhanov proposed two to three years of subsidies for domestic oilfield equipment to boost technological export capability. Meanwhile, Gazprom initiated endurance testing on a new 16 MW gas turbine engine, while Russia’s Emergency Situations Ministry announced plans to share oil spill response expertise with Azerbaijan, Iran, Kazakhstan, and Turkmenistan.
Armenia
Armenian Security Council Secretary Alen Simonyan declared that Armenia intends to purchase natural gas from all available suppliers, including Azerbaijan and Iran, to diversify energy imports and prevent unilateral dependence. Russian Foreign Minister Sergey Lavrov cautioned that European integration promises could mislead Yerevan, while Armenian parliamentarians stated Armenia is not prepared to exit the EAEU. Despite Middle East crude exceeding $130 per barrel and regional transit risks, retail prices for petrol, diesel, and natural gas in Armenia remain stable. Energy security is supported by long-term supply frameworks under the EAEU, protecting consumers from volatility recorded by international market price assessments.