The Russian government is considering extending its domestic diesel export embargo through September to combat persistent fuel shortages. At the same time, Brent crude fell below 87 dollars per barrel as diplomatic hopes eased Middle East shipping tensions.
Global market
On Tuesday, Brent crude plummeted below $87 per barrel for the first time since mid-August, reversing its recent rally as hopes of diplomatic mediation by Pakistan cooled US-Iran maritime tensions. In global oil hubs, Singapore’s residual fuel oil stocks declined 3% this month to 18.41 million barrels as shipping demand remains high. Seeking to bypass the crippled Strait of Hormuz, Equinor Executive Vice President Philippe Mathieu noted that the ongoing Middle East shipping crisis has significantly boosted the appeal of the stalled $42-billion Tanzania LNG project, though Equinor and Shell remain in difficult negotiations with local authorities.
Simultaneously, the world’s largest refiner, China’s state-owned Sinopec, announced plans to reallocate capital toward new energy and chemicals as domestic fuel sales crumble to their lowest level in nearly a decade due to the rapid electric vehicle boom. In the United States, the race to power artificial intelligence is reviving nuclear energy ambitions; the MIT Energy Initiative reported that hyperscale data centers now account for more than 4% of total US electricity consumption, with a single center consuming as much power as 50,000 homes.
Russia & CIS
The Russian Fuel Union has formally requested Russian Deputy Prime Minister Alexander Novak to extend the federal ban on diesel exports beyond September 1. Market sources indicate that Moscow is actively preparing to extend the diesel export embargo until the end of September or potentially through the end of 2026 to secure the domestic market. To mitigate ongoing fuel shortages, Russia is scheduled to receive its first-ever seaborne gasoline shipment from Turkey next week, with the medium-range tanker Wendrix transporting fuel from Mersin.
Security risks within the region remain high. A Ukrainian drone strike on the Zaporizhzhia nuclear power plant injured two station employees, while a separate attack on the 180,000-barrel-per-day Afipsky refinery in Krasnodar sparked a major fire and damaged 10 homes. Additionally, Russian forces destroyed military fuel reservoirs in the Ukrainian port of Chornomorsk, while the death toll from a devastating fire at the Amur Gas Chemical Complex rose to three workers, including two Chinese nationals and one Russian.
Armenia
The Russian Ministry of Foreign Affairs announced that Moscow does not anticipate economic shocks from any reduction in bilateral trade with Armenia. Russian diplomats clarified that temporary import restrictions on certain Armenian goods are strictly technical measures aimed at ensuring compliance with EAEU sanitary and phytosanitary regulations.
Despite these trade frictions and global energy volatility, Armenia’s retail markets for petrol, diesel, and natural gas remained completely stable on August 25. Under Yerevan’s integration within the EAEU, the country secures uninterrupted, duty-free imports of Russian natural gas and petroleum products at stable, long-term fixed rates, ensuring that domestic retail tariffs are fully protected from volatile international market price assessments.