Global energy markets face volatility amid rising winter demand

Global energy markets are facing significant volatility as winter approaches. In Greece, wholesale electricity prices surged by over 28% in just two days, reaching 212.18 euros per megawatt-hour. To mitigate rising costs for households and businesses, the Greek government is implementing a subsidy for heating oil, effective from October 15 to October 31, 2026. While Greek refineries and renewable energy contributions provide some stability, high international prices remain a concern.

In North America, oil rig counts in the US have increased to 462, signaling production expansion, while gas rigs saw a slight decline. Canada also reported an increase in total rigs. Meanwhile, the global LNG market is shifting; US tankers previously destined for Asia are rerouting toward Europe due to softening Asian demand, providing temporary relief to European gas stocks which currently sit below five-year averages.

In Brazil, the government has moved to eliminate federal taxes on gasoline and increased diesel subsidies to combat rising living costs. This intervention, estimated to cost 5.2 billion reais, aims to pass savings directly to consumers. Overall, geopolitical tensions in the Middle East and fluctuating supply chains continue to pressure global energy prices.