The International Energy Agency (IEA) projected global coal demand will reach an all-time high as the Strait of Hormuz closure and surging gas prices restrict fuel supplies. Meanwhile, Chinese heavy-lift vessels departed Zhangjiagang carrying power generation modules for Russia’s Arctic LNG 2 project, while Rhine water levels fell to a critical 20 centimeters.
Global market
The International Energy Agency (IEA) expects global coal demand to reach a record high as the closure of the Strait of Hormuz and elevated gas prices force nations back to solid fuels. In European inland shipping, water levels on the Rhine dropped to 20 centimeters, threatening a complete shutdown of fuel barge transport. Meanwhile, Qatar’s Energy Minister Saad Sherida Al-Kaabi rejected US claims that the Strait of Hormuz is losing importance. In the tanker sector, spot rates for Very Large Crude Carriers (VLCCs) surpassed $1.2 million per day. Concurrently, major energy companies including ExxonMobil and Shell continue allocating over $100 billion annually to dividends and buybacks, while Brent crude eased 1% to $102.16 per barrel.
Russia & CIS
Chinese heavy-lift ships Glory and Bright departed Zhangjiagang carrying two power generation modules for the second train of Arctic LNG 2, gCaptain reported. In Germany, co-chair of the Alternative for Germany (AfD) party Alice Weidel urged a resumption of Russian natural gas imports and expanded nuclear energy on ZDF. In the downstream sector, Ukrainian state energy firm Naftogaz and Hungarian energy group MOL signed a memorandum to construct oil product storage facilities in Hungary near the border, announced acting Naftogaz board chairman Sergey Fedorenko. Additionally, Russian thermal coal prices at Vostochny Port rose 6.1% to $106.10 per ton, reaching their highest level since late 2023.
Armenia
Qatari Energy Minister Saad Sherida Al-Kaabi’s statements on the Strait of Hormuz and reports on rising US diesel costs received detailed coverage across Armenian media, news.am reported. Surging global freight rates and rising coal prices reinforce market uncertainties for fuel importers in the South Caucasus. Nevertheless, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Uninterrupted natural gas deliveries and regular operations at the Armenian Nuclear Power Plant are maintained through long-term trade agreements under the EAEU, protecting the domestic market from price volatility recorded by international market price assessments.