Energy
Monday, March 25th, 2024 4:17 pm EDT
Key Points
- Crude oil futures experienced a rise on Monday due to Ukrainian drone strikes disrupting Russian oil refining capacity.
- The West Texas Intermediate (WTI) contract for April increased by 38 cents to $81.01 per barrel, while the Brent contract for May rose by 37 cents to $85.79 per barrel.
- A Ukrainian drone attack resulted in a fire at the Kuibyshev oil refinery in Samara, with industry sources indicating that a major refining unit at the facility was knocked out. Ukrainian intelligence claims a dozen facilities have been successfully hit in a campaign against Russian energy infrastructure since the start of the year, disrupting at least 10% of Russia’s refining capacity according to British intelligence.
Crude oil futures experienced an upward trend on Monday following reports of Ukrainian drone strikes disrupting Russian oil refining operations. The West Texas Intermediate (WTI) contract for April saw a gain of 38 cents, reaching $81.01 per barrel, while the Brent contract for May increased by 37 cents to $85.79 per barrel. Over the weekend, a Ukrainian drone attack resulted in a fire at the Kuibyshev oil refinery in Samara, with industry sources indicating that a significant refining unit at the facility was incapacitated due to the assault. This incident is part of a broader campaign of strikes initiated by Kyiv against Russian energy infrastructure since the beginning of the year, with Ukrainian intelligence claiming successful hits on approximately a dozen facilities. British intelligence estimates suggest that these attacks have disrupted around 10% of Russia’s refining capacity. The British Ministry of Defense highlighted the potential for extensive repairs, which could entail significant time and expenses depending on the extent of the damage. As geopolitical tensions continue to impact oil markets, the repercussions of such disruptions underscore the volatility and unpredictability within the global energy landscape.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/25/oil-prices-rise-as-ukraine-strikes-russian-refineries.html
