Saudi Arabia announced plans to expand its East-West oil pipeline to 10 million barrels per day to bypass the Strait of Hormuz, as OPEC cut its global demand growth forecast. Meanwhile, European natural gas prices breached $1,000 per thousand cubic meters, and Washington declared a power grid emergency across 13 US states.
Global market
Saudi Energy Minister Prince Abdulaziz bin Salman announced plans to raise the East-West pipeline capacity to 10 million barrels per day over two to three years to bypass the Strait of Hormuz, up from 5.8 million bpd. Demonstrating ongoing security threats, Saudi Press Agency spokesman Major General Turki Al-Malki reported the interception of two Houthi ballistic missiles over Khamis Mushait. In its monthly report, OPEC lowered its global oil demand growth forecast by 180,000 barrels per day to 105.72 million bpd. Furthermore, European gas benchmark Dutch TTF natural gas futures breached $1,003 per thousand cubic meters, while US Energy Secretary Chris Wright declared a power grid emergency across 13 states to prevent blackouts.
Russia & CIS
Russian Deputy Prime Minister Alexander Novak stated that domestic fuel markets are stabilizing, as the Federal Antimonopoly Service opened 67 cases and issued 99 warnings to market participants. On diplomatic channels, Russian President Vladimir Putin discussed the US-Russia diesel supply agreement with UAE President Sheikh Mohamed bin Zayed Al Nahyan, while Russian Finance Minister Anton Siluanov emphasized that diesel export revenues support Russia’s balance of payments. In negotiations, US envoys Steve Witkoff and Jared Kushner refused Ukrainian requests for concessions in exchange for halting refinery attacks, The New York Times reported. In domestic infrastructure, a pipeline fire on the Gazprom Transgaz Saratov network in Penza Region was extinguished.
Armenia
Saudi Arabia’s pipeline expansion to bypass Hormuz and European gas prices exceeding $1,000 per thousand cubic meters define the external backdrop for Armenia. Former Armenian MP Aram Sargsyan noted that access to the Russian market remains central to EAEU trade appeal amidst global fuel market shifts. Despite international energy volatility, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Natural gas deliveries from Russia and generation at the Armenian Nuclear Power Plant proceed normally under long-term EAEU trade agreements shielding the domestic market from price fluctuations recorded by international market price assessments.