Smoke billows after Ukraine’s SBU drone strikes a refinery, amid Russia’s attack on Ukraine, in Ryazan, Ryazan Region, Russia, in this screen grab from a video obtained by Reuters, March 13, 2024.
Video Obtained By Reuters | Via Reuters
Crude oil futures rose Monday as Ukraine drone strikes disrupt Russian oil refining capacity.
The West Texas Intermediate contract for April gained 38 cents, or 0.47%, to $81.01 a barrel. The Brent contract for May added 37 cents, or 0.42%, to $85.79 a barrel.
A Ukrainian drone strike caused a fire at the Kuibyshev oil refinery in the city of Samara over the weekend. Industry sources told Reuters that one of the major refining units at the facility was knocked out after the attack.
Kyiv has launched campaign of strikes against Russian energy infrastructure since the start of the year with Ukrainian intelligence claiming a dozen facilities have been successfully hit. At least 10% of Russia’s refining capacity has been disrupted by the attacks, according to British intelligence.
“Depending on the extend of the damage, major repairs could take considerable time and expense,” the British Ministry of Defense said in an update over the weekend.
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