China has intensified its battle for Russian oil exports, outbidding India and threatening a regional refined products deficit as global crude prices break past 93 dollars per barrel. Concurrently, severe regional bottlenecks and escalating infrastructure outages continue to strain the Eurasian energy grid.
Global market
Brent crude futures climbed 1.6 percent to 93.10 dollars per barrel on the ICE exchange, crossing the 93-dollar threshold for the first time since July 30. This price surge comes as Middle Eastern tensions drive shipping costs to record highs. According to shipbroking firm Braemar, prices for both new and second-hand Very Large Crude Carriers (VLCCs) exceeded 130 million dollars per vessel in the second quarter of the year, hitting a peak last seen in 2008, while annual chartering rates also set historic records. David, Braemar’s head of sale and purchase, emphasized that physical control of assets has become a paramount priority for Middle Eastern exporters.
Concurrently, Chinese refiners are aggressively buying Iraqi crude, securing 8 million barrels of Basrah Heavy and Basrah Medium for prompt delivery. This localized purchasing occurs as total vessel crossings through the blockaded Strait of Hormuz dropped to 95 transits for the week ending August 17, down from 118 the previous week. High energy costs also impacted Japan, where the July import bill hit an all-time high of 76.39 billion dollars. Although Japan’s crude import volumes rose just 5.5 percent year-on-year, its overall oil bill surged 87.8 percent due to larger shipments of expensive US crude. These global pressures are mirrored in Europe, where eurozone energy prices rose 10.3 percent in July and Germany warned of historically low gas storage levels.
Russia & CIS
A major realignment of Eurasian supply is underway as China outbids India for Russian crude oil. Analysis from Reuters warns that Beijing’s aggressive purchasing could trigger severe diesel and gasoline shortages in Asia as Indian refiners are forced to reduce their refined product exports. Meanwhile, nuclear safety concerns escalated as the Zaporizhzhia NPP completely lost its external power supply after Ukraine failed to deliver voltage through the “Dniprovska” transmission line. The station transitioned to backup diesel-generators, a development immediately communicated to the IAEA.
Furthermore, a series of Ukrainian drone attacks on Crimean energy infrastructure prompted authorities to restrict electricity supplies across the entire peninsula, with northwest and eastern districts suffering the most severe disruptions. Domestically, Russian security forces arrested an Omsk resident on high treason charges for allegedly transmitting sensitive technical data about a local refinery to Ukrainian intelligence. In other regional developments, a court in Nizhny Novgorod overturned the reinstatement of Ratmir Mavliev as Mayor of Ufa following critical statements from Head of Bashkiria Radiy Khabirov.
Armenia
Armenian energy policy took a decisive step forward as the Cabinet of Ministers prepared its new energy development program for 2026–2031. The proposed blueprint outlines plans to extend the operational life of the active Armenian NPP and construct a new nuclear power plant, though the document does not specify a completion date. In a major geopolitical shift, Yerevan also plans to actively promote and expand direct energy connections with Turkey and Azerbaijan to integrate the republic into regional transborder corridors.
These long-term diversification initiatives emerge as Armenia’s traditional southern trade options tighten, with Abdolnaser Hemmati, the Governor of the Central Bank of Iran, confirming that Iranian oil exports have virtually ceased. This regional squeeze underscores Yerevan’s focus on securing more resilient infrastructure, especially as local markets remain exposed to volatile global benchmarks where prices are calculated on the basis of fluctuating international market price assessments.
📊 I can compile a comparative analytical chart tracking the escalation of VLCC supertanker prices against the rising Brent crude benchmarks to help you visualize the cost of maritime trade friction.