Global shipping costs for crude oil surged to $20 per barrel, triggering warnings from Goldman Sachs about new price shocks, while European gas prices rose 3%. Meanwhile, Gazprom and CNPC moved closer to finalizing the Power of Baikal gas pipeline deal, and Armenia affirmed its sovereignty amid EAEU integration discussions.
Global market
Global seaborne oil freight rates surged to $20 per barrel, up from $3 per barrel last year due to the Middle East shipping crisis, according to Goldman Sachs analysts, who warned of upside risks to their $90 Brent crude forecast. In fuel refining, Morgan Stanley analysts predicted global fuel markets will remain tight through mid-2027, with deferred refinery maintenance peaking at 3.4 million barrels per day in the second quarter of 2027. To ease supply strains, the UK government approved the Jackdaw North Sea gas field developed by Adura, a joint venture between Shell and Equinor, with first gas expected by late October.
Russia & CIS
Gazprom and China National Petroleum Corporation (CNPC) could reach a final agreement on the Power of Baikal gas pipeline by year-end, announced Russian Vice Prime Minister Alexander Novak. On European corporate deals, Hungarian energy group MOL refuted claims by Serbian Finance Minister Sinisa Mali regarding an agreement to buy Gazprom Neft’s stake in Serbian energy firm NIS. In domestic enforcement, Russia’s Federal Antimonopoly Service fined gas distribution companies 286.55 million rubles over customer connection delays. Furthermore, Russian President Vladimir Putin stated that the US-Russia diesel agreement reduced global fuel prices by 5% to 6%.
Armenia
Armenian Foreign Minister Ararat Mirzoyan stated that state sovereignty remains paramount as Yerevan analyzes the Eurasian Intergovernmental Council report on risks associated with exiting the EAEU. Addressing safety concerns, Russian Foreign Ministry Spokeswoman Maria Zakharova emphasized that allegations regarding the Armenian Nuclear Power Plant lack factual basis, highlighting its decades of proven operational reliability. Meanwhile, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Uninterrupted natural gas deliveries from Russia continue under long-term EAEU contracts, shielding the domestic market from fluctuations recorded by international market price assessments.