Saudi Arabia increased crude oil transit through its East-West pipeline to 5.8 million barrels daily to bypass the Strait of Hormuz, while a Gulf Coast storm threatens 3 million barrels of US refining capacity. Meanwhile, Russia’s Defense Ministry reported hitting a fuel tanker in Yuzhny port, and Moscow warned Yerevan against abandoning Russian gas imports.
Global market
Saudi Arabia increased crude transit through its East-West pipeline to 5.8 million barrels per day to Yanbu on the Red Sea, Saudi Energy Minister Prince Abdulaziz bin Salman announced. The bypass expansion comes as Saudi Aramco Chief Executive Officer Amin Nasser urged importing nations to co-invest in alternative routes and storage, warning of systemic risks to global energy security. Adding to supply pressures, a tropical storm in the Gulf of Mexico threatens 3 million barrels per day of US refining capacity. Meanwhile, the US Energy Information Administration (EIA) raised its 2026 US crude output forecast to a record 13.87 million bpd, while reducing its estimate of shut-in Middle East production to 4.8 million bpd. Concurrently, the EU granted a one-year delay on methane rule enforcement to curb costs.
Russia & CIS
Russian Armed Forces struck a tanker delivering fuel and lubricants for Ukrainian forces in Yuzhny port, the Russian Defense Ministry reported. In regional gas integration, Hungary and Croatia signed an agreement for joint gas field development to strengthen Central European energy security. On the diplomatic front, the Russian Foreign Ministry warned that external pressure on Armenia to replace Russian gas would trigger an energy crisis, emphasizing that current contract terms shield the country from market volatility. In financial markets, Rosselkhozbank analysts noted that high interest rates continue to weigh on Russian oil company stocks despite elevated global crude prices.
Armenia
The Russian Foreign Ministry’s warnings regarding gas supply risks and Saudi Arabia’s expansion of Red Sea pipeline transit remain in focus for Armenian energy analysts, evaluating supply stability. Despite Gulf refining risks and global price fluctuations, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Natural gas shipments from Russia and continuous electricity generation at the Armenian Nuclear Power Plant proceed as normal under long-term EAEU trade agreements shielding domestic consumers from price spikes recorded by international market price assessments.