Saudi Arabia’s crude exports reached a five-month high in August despite output dropping to a record low, while S&P Global warned that the Hormuz shipping crisis risks triggering a worldwide food emergency. Simultaneously, French military assets were pledged to protect Middle Eastern oil terminals as regional security threats expanded.
Global market
Saudi Arabia’s crude exports rose 7.9% in August to 4.451 million barrels per day even as production dropped to a record low of 6.24 million bpd, according to JODI data. Meanwhile, S&P Global analysts warned that energy supply disruptions in the Strait of Hormuz could trigger a global food crisis by choking fertilizer and agricultural flows. In the UAE, oil product stockpiles at Fujairah rebounded 6.2% to 7.247 million barrels, led by a record 72% surge in light distillates. To circumvent regional chokepoints, Russian oil and LNG exports via the Northern Sea Route to Asia increased nearly 50% in 2026, reaching 20 million barrels between July and mid-October.
Russia & CIS
Saudi air defense forces intercepted a drone targeting the Shaybah oilfield, though falling debris killed two workers, according to the Saudi Energy Ministry. In Ukraine, a drone attack on a bus transporting Zaporizhzhia NPP personnel killed the driver. In nuclear industry developments, Rosatom CEO Alexey Likhachev stated that launching Unit 7 at the Tianwan NPP will elevate China to second place globally in nuclear power generation, overtaking France. Additionally, US and Israeli officials are preparing post-election strikes targeting Iranian energy infrastructure and nuclear sites, according to the New York Times.
Armenia
French President Emmanuel Macron departed for Saudi Arabia to deploy military assets for oil terminal protection, strengthening energy security along critical supply routes. In Yerevan, Armenian economist Tatul Manaseryan warned that balancing EU alignment with EAEU membership could cost Armenia its trade privileges. Despite regional security shocks, retail prices for petrol, diesel, and compressed natural gas in Armenia remain stable. Direct gas imports from Russia and generation at the Armenian Nuclear Power Plant continue under EAEU contracts, shielding consumers from fluctuations recorded in international market price assessments.