Iraq has requested a dramatic increase in its OPEC baseline production quota to six million barrels per day as WTI crude futures surged past $95 per barrel. Meanwhile, NOVATEK is preparing LNG deliveries to Vietnam, and Yerevan reaffirmed its commitment to the EAEU despite trade disputes with Moscow.
Global market
Iraq has requested OPEC leadership to increase its baseline oil production quota to 6 million barrels per day for future supply allocations. The demand significantly exceeds Baghdad’s August output of 3.37 million barrels daily. The request coincides with WTI crude futures climbing above $95.04 per barrel for the first time since June. Refining bottlenecks continue to strain global markets: at the APPEC conference in Singapore, industry officials warned that an acute global diesel shortage will worsen as refining capacity falls short. To meet surging demand, Indian refineries operated at 105% to 108% capacity utilization. Furthermore, Kpler data revealed that Iranian crude loadings dropped 85% in August due to blockades.
Russia & CIS
NOVATEK plans to begin its first LNG shipments to Vietnam in 2027, according to NOVATEK Chief Executive Officer Leonid Mikhelson. A joint working group with PetroVietnam is being established to advance energy projects. On the domestic gas market, Russian Deputy Prime Minister Alexander Novak instructed officials to create a digital platform for residential gasification. Meanwhile, Kremlin spokesman Dmitry Peskov warned that European Union nations will fail to fully fill gas storage before winter. On the retail market, Moscow’s Meshchansky Court placed PJSC Eurotrans CEO Oleg Alekseenkov under arrest in a fuel theft probe, sending Eurotrans shares down 5.89%.
Armenia
Armenia has no plans to leave the EAEU and is not choosing between the EAEU and the EU, stated Sarkis Khandanyan, chairman of the Armenian National Assembly’s standing committee on foreign relations. However, the lawmaker described recent Russian trade restrictions on Armenian goods as politically motivated barriers contradicting EAEU principles. In broader Eurasian cooperation, member states are discussing unified regulations for transporting new nuclear technologies. Despite geopolitical tensions, domestic retail fuel and gas prices in Armenia remain stable under long-term EAEU agreements, shielding local consumers from volatility reflected in international market price assessments.