Global Energy Crisis Enters New Phase as Summer Approaches

MOSCOW, May 18. /TASS/. The global energy crisis caused by the Middle East conflict is entering a new phase as the summer season approaches, the Financial Times reported, citing sources.

The price of futures contracts of Brent crude oil for July 2026 delivery on London’s ICE has climbed above $111 per barrel for the first time since May 5.

TASS has compiled the main information on the situation in global energy markets.

Oil price

- The price of futures contracts of Brent crude oil for July delivery on London’s ICE has risen above $111 per barrel first since May 5, according to trade data.

- As of 1:00 a.m. Moscow time (10:00 p.m. GMT on the previous day) the Brent price was up by 1.91% at $111.35 a barrel.

- By 5:00 a.m. Moscow time (2:00 a.m. GMT) the price of Brent had extended gains to 1.96% reaching $111.40 per barrel.

New phase of crisis

- The global energy crisis caused by the Middle East conflict is entering a new phase as the summer season approaches, the Financial Times reported, citing sources.

- The situation with supplies of oil, diesel and jet fuel may be aggravated by increased demand for air conditioners and international travel.

- Economists have warned of the possibility of a new surge in oil prices due to the record-breaking depletion of global reserves, the newspaper said.

- European Commissioner for Sustainable Transport and Tourism Apostolos Tzitzikostas was quoted as saying by the newspaper that if the Middle East conflict was not resolved in the coming weeks, a global recession "could be on the table."

Causes of crisis

- Kirill Dmitriev, Special Representative of the Russian president and CEO of the Russian Direct Investment Fund (RDIF), said in early May that the world was heading toward the largest energy crisis in history due to record high oil prices.

- The escalating situation in the global energy market is linked to the conflict in the Middle East, including US and Israeli strikes on Iran and tensions surrounding shipping in the Strait of Hormuz.

Possible influence on Russian economy

- Changes in oil prices amid the Middle East conflict have a limited impact on the ruble’s exchange rate and the Russian economy, but the situation in the Middle East could pose inflationary risks for Russia, Adviser to Central Bank Governor Kirill Tremasov told reporters.

- If the conflict in the Middle East drags on, it could lead to a global surge in inflation, he said.

- The situation is currently being contained by reserves, but as they are depleted, oil and other products may become significantly more expensive, the expert noted.

- Fertilizer prices already rose sharply in the first wave of this crisis, leading to higher prices for agricultural products, he added.