The US administration invoked the Defense Production Act to boost fuel production at a Texas refinery as American crude oil inventories fell by 11.12 million barrels. Meanwhile, Washington is considering easing sanctions on Russian shadow fleet tankers to lower shipping costs and increase oil flow from the Persian Gulf.
Global market
US Vice President JD Vance announced the invocation of the 1950 Defense Production Act to expand the Delek refinery in Tyler, Texas, addressing sustained diesel prices above $6 per gallon. Highlighting supply tightness, the American Petroleum Institute reported a massive 11.12 million barrel drop in US crude oil inventories for the week ending October 9. In energy innovation, US Energy Secretary Chris Wright announced a $100 billion project to build the Paducah American Energy Hub for artificial intelligence in Kentucky. In crude markets, Brent crude held above $106 per barrel amidst ongoing Iranian attacks on tankers in the Strait of Hormuz, where another vessel sank. Meanwhile, container ship transits through the Suez Canal exceeded 50% of pre-disruption levels for the first time.
Russia & CIS
Substantial Russian diesel deliveries to the US market are expected within the next two weeks, according to The New York Post. To reduce maritime freight rates, the US administration is considering easing sanctions on shadow fleet tankers that previously carried Russian crude, Reuters reported. Domestically, the Russian government is weighing a temporary ban on liquefied petroleum gas (LPG) exports by non-producers through the end of the year, while the Federal Antimonopoly Service proposed a 4.99% tariff increase for Transneft crude pipelines in 2027. In nuclear security, the UK pledged £17 million ($22.5 million) to repair the protective shelter at the Chernobyl Nuclear Power Plant, as the IEA warned that global fuel supply deficits will persist until mid-2027.
Armenia
Expected Russian diesel shipments to the US and proposed Russian LPG export restrictions frame the energy backdrop for Armenia. Analysts note that Russia’s domestic market stabilization and long-term EAEU tariff structures mitigate fuel deficit risks across member states. Meanwhile, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Uninterrupted natural gas imports from Russia and generation at the Armenian Nuclear Power Plant proceed at full capacity under long-term agreements within the EAEU, protecting the domestic market from price volatility recorded by international market price assessments.