MOSCOW, May 10: The energy outlook for the European union and the United Kingdom has further deteriorated amid expected deeper cooperation between Russia and China in the oil and gas sector, according to Kirill Dmitriev, head of the Russian Direct Investment Fund (RDIF) and special presidential envoy for economic cooperation with foreign countries.
His remarks came after Russian President Vladimir Putin said on Saturday that Moscow and Beijing had reached a “high level of agreement” to take a significant step forward in expanding cooperation in the energy sector, particularly in gas and oil.
Commenting on Putin’s statement on social media platform X, Dmitriev said, “EU/UK energy options during the worst energy crisis in history just got worse.”
The comments come against the backdrop of continued volatility in global energy markets, with rising fuel and industrial prices reported across multiple regions.
The West Asia war has further disrupted global supply chains. Oil briefly surpassed $126 a barrel Thursday, its highest price in four years, as some traders worried about an escalation in the US-Iran war that would keep the Strait of Hormuz effectively shut.
Brent crude, the global benchmark, surged overnight to touch $126.41 a barrel, before falling to $115.8 a barrel, as trading volumes thinned. WTI crude, the US benchmark, fell 0.7% to $106 a barrel.
The US said it carried out self-defence strikes in response to what it described as “unprovoked” Iranian attacks while American naval vessels were transiting out of the Gulf through the Strait, located south of Iran. In contrast, Iranian state media reported that the US had violated the ceasefire agreement reached in April.
Despite the escalation, US President Donald Trump said on Friday that the ceasefire with Iran “is still in place.” Iranian state media also claimed that the situation “is back to normal now.”
Before the recent tensions began, oil prices were trading at approximately USD 70 per barrel.
The Strait is a critical global energy corridor, responsible for transporting roughly 20% of the world’s oil, petroleum products, and liquefied natural gas from Gulf producers to international markets. Disruptions in the route have contributed to increased pressure on global energy prices.
However, Russia and China’s growing energy alignment is being closely watched by global markets, as major economies continue to seek stable and diversified energy sources amid geopolitical uncertainty. (UNI)
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