Ukraine strikes two Russian oil refineries with drones
Key Facts
In a new escalation of the war, Ukraine targets Russian oil infrastructure to weaken its logistical capabilities. Ukrainian President Volodymyr Zelenskiy said Ukraine struck two Russian oil refineries in the Krasnodar and Yaroslavl regions overnight Saturday, according to Reuters. The attacks are part of Kyiv's strategy to disrupt Russian fuel supply and logistics.
The strikes come amid already tight oil supply conditions. According to API data released on June 23, US commercial crude stocks fell by 0.765 million barrels, though the draw was smaller than the previous week's 8.33 million barrels. Canadian inflation data on June 22 showed a higher-than-expected rise, bolstering demand expectations for energy.
Investors are watching conflict developments, as further attacks on Russian oil infrastructure could lead to more volatility in crude prices. The market is also awaiting the official inventory report from the US Energy Information Administration this week for signals on supply-demand balance.
Latest Updates · 3
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In a notable development, Russian President Vladimir Putin acknowledged that the country faces fuel shortages as a result of the recent Ukrainian drone strikes on oil refineries, according to news agencies. This marks the first official acknowledgment from Moscow of the impact on domestic fuel supplies, which could heighten tensions in energy markets.
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In a notable development, President Vladimir Putin admitted that Russia is going through a difficult period due to relentless Ukrainian drone attacks on oil infrastructure, according to media reports. Deputy Prime Minister Alexander Novak said Moscow is actively reviewing fuel export agreements to avoid compromising domestic needs, which could tighten global oil supplies and push prices higher.
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Update: Ukraine has expanded its attacks on Russian oil infrastructure, with drone strikes causing fuel shortages in Siberia, thousands of miles from the war zone. This is part of a marked escalation in Ukraine's long-range attacks on Russian military and energy facilities in recent months, heightening concerns over a broader impact on Russian energy supplies.