Qatar has extended its state of force majeure on liquefied natural gas (LNG) deliveries into late October, triggering a sharp surge in Asian and European energy prices. This decision comes amid ongoing logistical disruptions in the Strait of Hormuz, which continue to keep global crude oil markets under pressure.
Global market
State-owned QatarEnergy has extended its LNG force majeure, notifying buyers in Pakistan and Bangladesh that cargo cancellations will continue through October. This supply squeeze drove Asian spot LNG prices to a four-year high of $23.388 per million British thermal units (MMBtu) on Friday, August 28, 2026. Meanwhile, crude oil prices remained stable, with ICE Brent hovering near $90 per barrel, despite the US announcing “toughest sanctions in history” against Iran. In the renewable sector, Amazon signed four new power purchase agreements in Sweden and expanded a German contract to buy 600 MW of carbon-free electricity from the Gennaker offshore wind farm in the Baltic Sea to power its growing artificial intelligence and data center operations.
Russia & CIS
A Ukrainian drone strike on Friday struck the Slavneft-YANOS oil refinery in Yaroslavl, causing a fire at the facility, which processes 15 million tons of oil per year (300,000 bpd). This operational disruption coincided with first-half earnings reports. Shareholder net profit at state gas giant Gazprom fell 12% to 863.9 billion rubles, while capital expenditures were cut by 30%. Conversely, the board of Gazprom Neft recommended a first-half dividend of 42.51 rubles per share, backed by a net profit of 286.1 billion rubles. Additionally, pipeline operator Transneft reported a 3.3% decline in net profit to 148.3 billion rubles, citing rising costs related to protecting critical transportation infrastructure.
Armenia
Russian Presidential Aide Yuri Ushakov announced that President Vladimir Putin and Armenian Prime Minister Nikol Pashinyan will meet at the upcoming SCO summit to discuss reconciling Yerevan’s integration within the EAEU with its aspirations for EU membership. This political dialogue comes as local media outlets highlight that Russia’s oil refining volumes have fallen to a 20-year low due to refinery repairs. Despite these regional energy strains, Armenia’s retail prices for petrol, diesel, and natural gas remained stable on August 28. Armenia’s domestic market continues to be protected by the EAEU framework, which secures duty-free and uninterrupted imports of Russian energy at long-term fixed rates, shielding consumers from volatile international market price assessments.