The White House is weighing the Defense Production Act to expand domestic refining capacity as US diesel prices top $6 per gallon for the first time. Meanwhile, Russian President Vladimir Putin warned European gas prices could surge to $1,500 per thousand cubic meters amid severe storage fill deficits.
Global market
The White House is considering invoking the Defense Production Act to expand US refining capacity as refineries operate at 98% capacity and diesel prices exceed $6 per gallon. US President Donald Trump discussed emergency measures with refining executives. On crude markets, Brent traded just above $104 per barrel, while Saudi Arabia’s August production fell by 1.9 million barrels per day due to the effective closure of the Strait of Hormuz since March. The EIA estimates Middle East output will not return to pre-conflict levels until Q2 2027. Meanwhile, the US active rig count rose by 52 year-on-year to 591 units, according to Baker Hughes.
Russia & CIS
Russian President Vladimir Putin warned European gas spot prices could rise to $1,500 per 1,000 cubic meters due to EU policy errors and low storage levels in Germany and the Netherlands. On domestic fuel trade, Kazakhstan’s Ministry of Energy clarified that no AI-92 petrol was supplied to Russia, stating such deliveries require explicit bilateral agreements. In regional security, Rostov Region Governor Yury Slyusar reported over 70 drones shot down, with debris causing a retail store fire in Taganrog. Additionally, Tyumen Region Deputy Governor Andrey Panteleyev announced an upcoming energy forum hosting delegations from Belarus, Kazakhstan, Vietnam, China, and Algeria.
Armenia
Armenian scientists unveiled a design for a prototype 4th-generation nuclear power plant, according to news.am. In domestic generation, solar power reached over 17% of Armenia’s total electricity output, driven by rapid installation of autonomous solar panels by businesses and households. Internationally, news.am reported that drone strikes targeting Saudi Arabia’s East-West pipeline temporarily halted crude flows, amplifying regional transit risks. Despite global market turmoil and Brent remaining above $104 per barrel, Armenia’s retail petrol, diesel, and natural gas prices remain stable under long-term bilateral agreements within the EAEU, protecting consumers from volatile international market price assessments.