China approved a 3.7 million metric ton fuel export package for October to relieve global diesel shortages, while US LNG developer Venture Global lost an arbitration ruling to Portugal’s Galp. Meanwhile, European natural gas reserves fell to a 15-year low, and Armenian authorities charged an EAEU official over fraudulent quality certificates.
Global market
China approved 3.7 million metric tons of fuel export quotas for October, covering gasoline, diesel, and jet fuel following a one-week export suspension that drove global diesel prices to record highs, Reuters reported. In natural gas litigation, US LNG exporter Venture Global lost an arbitration case to Portugal’s Galp for breaching supply contracts to sell cargoes at higher spot prices. Reflecting tight refined product markets, Wall Street Journal analysts projected record third-quarter profits for US refiners Valero Energy, Marathon Petroleum, and Phillips 66. Meanwhile, Brent crude traded at $102.83 per barrel and WTI at $90.33 per barrel amidst low Strait of Hormuz tanker traffic, while Zhoushan’s Hi5 bunker spread collapsed to $41 per metric ton.
Russia & CIS
European natural gas storage levels fell to a 15-year low of 70% capacity, forcing the EU to seek an additional 9 billion cubic meters of LNG for winter, according to an IEEFA report published by Politico. In corporate markets, shares of Russian energy major Lukoil fell 2% after its board recommended a nine-month dividend of 535 rubles per share. On military logistics, Russian armed forces struck 14 cargo vessels and an oil tanker supplying military fuel and equipment. Meanwhile, Russian Vice Prime Minister Alexander Novak presented the Russian Energy Week program focusing on traditional upstream optimization, while Krasnoyarsk krai charged four individuals in a 253 million ruble fuel fraud scheme.
Armenia
Armenian law enforcement charged an official from the Eurasian Economic Commission (EAEU) with illegal lobbying for laboratories issuing fraudulent product quality certificates. In regional security, Iran’s Islamic Revolutionary Guard Corps (IRGC) refuted US data regarding oil transit volumes through the Strait of Hormuz, underlining ongoing volatility along Caucasian trade corridors. Despite international market pressure and Brent crude trading at $102.83 per barrel, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Natural gas imports from Russia and generation at the Armenian Nuclear Power Plant proceed under long-term EAEU trade agreements shielding the domestic market from price spikes recorded by international market price assessments.