Drone strikes by Ukraine on Russian refineries have caused severe domestic fuel shortages, forcing Moscow to contract Kazakh facilities for processing. Amid these infrastructure crises, Washington blamed Kyiv for surging global fuel prices while Armenia faces a looming exit from the EAEU.
Global market
US commercial crude inventories fell by 4.5 million barrels to 424.5 million barrels during the week ending August 28, according to the Energy Information Administration. In the Strait of Hormuz, Riyadh formally accused Iran of Monday’s attack on the Saudi-owned supertanker Sidr after Bahri confirmed the deaths of two Filipino crew members. Geopolitical fears pushed global coal prices to an 11-week high of $145 per ton. Additionally, European budget carrier Ryanair reduced its winter traffic targets due to unhedged fuel costs, warning that less-hedged competitors could face collapse as Middle East crises continue to disrupt energy markets.
Russia & CIS
Russia has struck a deal with a private refinery in Kazakhstan to process its crude as Ukrainian drone strikes knock out dozens of domestic facilities. US Treasury Secretary Scott Bessent warned that Kyiv’s strikes on Russian energy infrastructure are creating a global “energy shock” and driving up fuel prices. Domestically, Russian retail petrol prices rose 0.9% to 77.76 rubles per liter in the week ending August 31, prompting the Energy Ministry to boost emergency fuel shipments to the Chelyabinsk region due to massive queues. Meanwhile, Russian Deputy Prime Minister Alexander Novak stated that several repaired refineries have resumed operations, adding that OPEC+ will not consider new output cuts.
Armenia
Armenia faces a very high probability of having its EAEU membership frozen in December 2026 if it initiates official EU accession, according to Russian newspaper Kommersant. The dispute between Russian President Vladimir Putin and Armenian Prime Minister Nikol Pashinyan over the country’s economic integration path has drawn international coverage from Al Jazeera, highlighting severe regional risks. Despite this geopolitical pressure, local retail prices for petrol, diesel, and natural gas remain stable. Armenia’s energy security continues to rely on the EAEU, which guarantees duty-free Russian gas imports at long-term fixed rates, shielding consumers from fluctuations in international market price assessments.