Russian President Vladimir Putin and Vietnamese leaders signed 17 agreements in Hanoi, establishing a joint strategic fuel reserve to bolster energy security in Southeast Asia. The bilateral pact coincides with updated US Energy Information Administration forecasts raising oil price projections while projecting declining global petroleum inventories.
Global market
The US Energy Information Administration raised its Brent crude price and global production forecasts while lowering its global demand outlook amid shrinking worldwide oil inventories. Concurrently, China’s Sinopec projected a 8.9% drop in Chinese oil demand for 2026—a decline of 600,000 barrels per day—driven by electric vehicle adoption and high crude prices. In corporate energy developments, Google committed €13 billion to Finnish AI infrastructure, securing a 22-year power purchase agreement for up to 50% of the output from Fortum’s Loviisa nuclear plant. In Africa, Uganda unveiled its new Pearl Sweet crude grade ahead of 230,000 barrels per day of plateau exports, while ExxonMobil confirmed its 20th oil discovery in Angola’s Block 15.
Russia & CIS
Loading at the Caspian Pipeline Consortium marine terminal was temporarily halted following a drone incident, according to Kazakhstan’s Ministry of Energy. In Southern Russia, drone strikes damaged a fuel oil terminal at Novorossiysk, killing four civilians, and damaged a power substation in Gelendzhik. On the fiscal front, Russia’s Ministry of Finance is considering a $50 per barrel price cap for its budget rule, as Arctic LNG-2 produced gas at a record rate exceeding 27 million cubic meters per day in July and August. Additionally, Crimean Governor Sergey Aksyonov dismissed Crimeanenergo’s chief executive over illegal fees, and Russian forces struck fuel tanks at the Nika Terra terminal in Kherson.
Armenia
A Panama-flagged tanker carrying 2 million barrels of fuel oil was attacked in Iraqi territorial waters, according to Iraq’s Ministry of Transport as reported by news.am. The strike on a major fuel cargo along key maritime routes has heightened concerns among Armenian importers regarding regional supply chain stability. Energy expert Nabil al-Marsumi noted that Iranian tankers are increasingly navigating the Strait of Hormuz with identification systems deactivated. Despite regional maritime disruptions, domestic petrol, diesel, and gas tariffs in Armenia remain stable, cushioned by long-term EAEU bilateral supply contracts that shield consumers from volatile international market price assessments.