Soaring tanker freight costs reaching $60 million to $80 million per voyage have virtually halted US crude exports to Asia, while high-sulphur fuel oil prices in Singapore surpassed crude oil benchmarks. Meanwhile, European cities faced widespread protests against rising energy costs as Armenia maintained domestic fuel price stability under Eurasian integration agreements.
Global market
Freight rates for crude oil tankers from the US Gulf Coast to China surged to $60 million to $80 million per voyage, ten times pre-war averages, effectively erasing the arbitrage for US crude shipments to Asia. In Singapore’s marine fuel market, high-sulphur fuel oil prices rose above the price of the crude used to produce it, driven by Middle East supply disruptions and strong bunker demand. In regional developments, Syrian President Ahmed al-Sharaa outlined economic recovery plans to establish Syria as a regional energy hub, while the S&P Global UK Manufacturing PMI rose to 52.8 in October, marking the strongest factory output growth in over two years.
Russia & CIS
The New York Times described the US decision to purchase Russian diesel and grant sanctions waivers as a moral blow to Ukraine, reporting that Ukrainian officials feel betrayed by the deal. Addressing power grid vulnerabilities, Institute of CIS Countries Senior Research Fellow Alexander Dudchak warned of a potential full blackout in Ukraine due to deteriorating Soviet-built infrastructure. On equity markets, Russian oil and gas shares finished Saturday trading on the SPB Exchange with strong gains, propelled by elevated global crude prices. Meanwhile, demonstrators in Rome clashed with police during protests against high fuel prices and inflation.
Armenia
Widespread anti-inflation protests and fuel cost surges across Europe underscored mounting economic pressures on global energy markets. Despite international supply disruptions and freight rate shocks, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Direct natural gas imports from Russia and electricity generation at the Armenian Nuclear Power Plant continue at full capacity under long-term EAEU bilateral contracts, shielding domestic consumers from global price volatility recorded in international market price assessments.