Attacks on Russian refineries may affect global oil supply — report

Nation

19 March 2024, 11:30 PM

Ukraine’s campaign of sustained drone strikes on Russian oil refineries could reduce the global petroleum supply by approximately 350,000 barrels per day, Reuters reported on March 19.

The report noted that the benchmark Brent crude oil rose by 62 cents (0.7%) to $87.57 per barrel, the highest since November 2023.

StoneX energy analyst Alex Hodes told the journalists that reduced refinery activity in Russia has led to an increase in Russian crude exports. He added that this could eventually force Moscow to reduce its crude production as it might struggle with storage capacity.

SEB Research analyst Bjarne Schieldrop pointed out that even if the attacks don't lead to a loss of Russian crude supplies, oil prices may rise due to “surging refined product margins.”

On March 17, Reuters reported that at least 12 oil refineries in Russia have been successfully targeted by the Ukraine’s long-range drones over the past several weeks.

Інші новини

Все новости