Gazprom Chief Executive Alexey Miller warned that European natural gas prices could hit $2,500 per thousand cubic meters this winter as crude oil benchmark prices rose to $116.56 per barrel following fresh Houthi strikes on Saudi Arabian refineries. Meanwhile, US pressure successfully secured a temporary pause in Ukrainian attacks on Russian oil refineries.
Global market
Brent crude futures rose to $116.56 per barrel ($116.11 in Asian trading), marking four consecutive months of price gains as Middle East tensions escalated. Yemeni Houthi Military Spokesperson Yahya Saree claimed new strikes targeting Saudi Arabian refineries at Ras Tanura and Rabigh, alongside a Saudi Aramco facility in Abqaiq. High energy prices are set to trigger a new wave of North Sea oil and gas corporate mergers, according to industry analysts. Meanwhile, oil product inventories at the UAE’s Fujairah port rose 23% to a five-week high of 8.914 million barrels, driven by a 49% increase in light distillates.
Russia & CIS
Gazprom Chief Executive Alexey Miller stated European gas prices could peak at $2,500 per thousand cubic meters during a severe winter, emphasizing that October market prices already breached the $1,200 threshold. On international diplomacy, The Wall Street Journal reported that US pressure persuaded Ukrainian authorities to observe an informal pause in refinery strikes until after the US midterm elections. In monetary policy, VTB Board Member Dmitry Pyanov indicated the central bank could consider key interest rate cuts in December if domestic fuel price dynamics remain favorable. Concurrently, Russian strikes on energy infrastructure triggered emergency power blackouts across Kiev and Dnipro.
Armenia
Global Brent crude price gains to $116.11 per barrel heighten regional energy market pressures, yet Armenia’s domestic fuel market maintains price stability. Despite warnings from Gazprom Chief Executive Alexey Miller regarding potential European gas price spikes and ongoing Middle East supply disruptions, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Direct natural gas supplies from Russia and power output at the Armenian Nuclear Power Plant operate at full capacity under long-term EAEU contracts, protecting domestic consumers from market shocks reflected in international market price assessments.