China’s PetroChina accelerated ultra-deep oil extraction in Xinjiang as a US naval blockade stranded 50 Iranian tankers in the Persian Gulf. Meanwhile, Moscow considered easing its diesel export ban to prevent refinery overstocking, while Yerevan awarded its State Prize to a developer of next-generation nuclear reactors.
Global market
State-owned PetroChina accelerated ultra-deep oil drilling in Xinjiang, extracting over 26 million tonnes of oil equivalent from reservoirs below 6,000 meters across 485 wells at the Hade-Fuman field. The domestic production push follows reports from policy group UANI that a US naval blockade has stranded at least 50 oil-laden Iranian tankers in the Persian Gulf. In maritime security, UKMTO reported three tanker incidents in the Strait of Hormuz within 24 hours, including an attack on the Panamanian-flagged vessel On Peace that injured 12 crew members. Concurrently, Indian Ambassador Fernando Buchelli announced talks with Ecuador to boost crude oil imports, while Japan’s Industry Minister Ryosei Akazawa proposed joint Asian oil reserve plans. Following supply shifts, Brent crude dipped below $100 per barrel.
Russia & CIS
The Russian Government is considering partially lifting its diesel export ban in October for select producers to prevent refinery overstocking, Interfax reported. In industrial policy, Russian President Vladimir Putin launched a 34-hectare battery manufacturing cluster in Moscow, projected to cover two-thirds of domestic demand by 2030. Internationally, Mexico halted all fuel shipments to Cuba due to US sanction threats, while former Moldovan President Igor Dodon accused the EU of increasing Russian gas purchases while prohibiting Chisinau from doing so. Additionally, Bloomberg warned that high diesel prices threaten to prolong regional inflation through 2027, and British energy giant BP raised its diesel output to maximum capacity.
Armenia
Armenia awarded its State Prize to aerospace and energy executive Kamal Gafarian for developing gas-cooled nuclear reactors, highlighting Armenia’s focus on advanced energy technologies. Despite Brent crude falling below $100 per barrel and escalating Hormuz shipping risks, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Natural gas shipments from Russia and generation at the Armenian Nuclear Power Plant proceed without interruption under long-term EAEU trade agreements shielding the domestic market from price fluctuations recorded by international market price assessments.