The European Commission reconfirmed that European gas supplies remain stable despite reduced storage levels, while the Brent-WTI price spread expanded to $12 per barrel over freight costs and export fears. Simultaneously, Moscow prepared for gas talks with Belgrade, and Iranian officials stated Russia will fund a regional transit pipeline.
Global market
The European Commission and Gas Coordination Group reconfirmed that EU natural gas supplies remain stable, despite storage levels lagging behind historical averages. Meanwhile, the price gap between Brent and US WTI crude widened to $12 per barrel, as WTI dropped 7% over the week due to rising freight rates and US diesel export ban concerns. To address soaring domestic fuel prices, Italian Industry Minister Adolfo Urso and Environment Minister Gilberto Pichetto Fratin summoned refinery executives for an October 8 meeting to boost fuel production. In corporate developments, BP explored acquiring Devon Energy’s Eagle Ford shale assets in Texas, which produce 77,000 barrels of oil equivalent per day. Additionally, oil product inventories at Fujairah surged 59% to 10.3 million barrels.
Russia & CIS
Russian President Vladimir Putin may hold gas contract extension talks with Serbian President Aleksandar Vucic, according to Kremlin spokesman Dmitry Peskov. In Moldova, regulators proposed raising household natural gas tariffs by 29% starting October 1. Across the European Union, fuel price surges sparked mass public protests in Portugal and France, Politico reported. On financial exchanges, Gazprom shares traded below 100 rubles per share on the Moscow Exchange. In environmental regulation, the Russian Union of Industrialists and Entrepreneurs urged Natural Resources Minister Alexander Kozlov to revise emissions reduction targets for industrial enterprises.
Armenia
Polish analysts suggested Russia could potentially raise natural gas export prices for Armenia, news.am reported. Concurrently, Iran announced that Moscow will finance the construction of a transit gas pipeline to Russia through Azerbaijan. Security developments surrounding the Zaporizhzhia Nuclear Power Plant and Ukrainian strikes on missile fuel additive facilities were also covered by Armenian media. Nevertheless, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Natural gas deliveries and operations at the Armenian Nuclear Power Plant proceed without disruption under EAEU trade agreements shielding consumers from market volatility recorded by international market price assessments.