Global oil prices breached $100 per barrel following heightened maritime disruptions in the Strait of Hormuz. Amid rising market volatility, US President Donald Trump claimed American oil production now surpasses OPEC following a major Venezuelan crude agreement.
Global market
Brent crude oil futures rose above $100 per barrel as shipping disruptions in the Strait of Hormuz intensified chokepoint risks. In Dallas, US President Donald Trump declared that Washington has become more powerful in oil production than OPEC after taking control of 65 billion barrels of Venezuelan reserves. Trump added that Venezuelan crude would supply the US for 500 years and predicted prices will fall after the November 3 Congressional elections. Meanwhile, API data showed US commercial crude stocks fell by 300,000 barrels, with 1.2 million barrels drawn from the Strategic Petroleum Reserve. Concurrently, Belneftekhim Chairman Ilya Ikan reported that Belarusian refineries hit decade-high profits, boosting gasoline exports to Russia 25-fold over seven months.
Russia & CIS
Russian Urals crude averaged $60.72–$69.72 per barrel in August, trading well above the EU price cap of $44.1 per barrel according to international market price assessments. Following the price surge, Russian Finance Minister Anton Siluanov confirmed that lowering the budget rule cut-off price to $50 per barrel from $59 is the base scenario. In production, LUKOIL launched commercial operations at the Komandirshor field group, building a treatment facility with a capacity exceeding 800,000 tons annually. Additionally, state hydro generator RusHydro expanded joint projects to modernize hydroelectric power plants in Vietnam.
Armenia
The European Court of Auditors declared a core section of the EU energy independence plan a failure, highlighting systemic risks for regional fuel importers. The audit underscores the vulnerabilities of energy importing nations as escalating conflict in Hormuz forces shippers into costly ship-to-ship transfers. Despite global logistics strain and rising international oil benchmarks, Armenia’s domestic fuel market remains stable through its membership in the EAEU. Retail prices for petrol, diesel, and natural gas stay protected under long-term bilateral contracts with Russia, shielding Armenian consumers from volatile international market price assessments.