Ukraine's drone attacks on energy facilities have taken a bite out of Russia's oil exports, industry insider says
Ukrainian drone attacks disrupt Russia's oil refining and export capacities, affecting prices and exports.
- Bilawal Riaz
- 1 min read
Ukrainian drone attacks have disrupted Russia’s oil refining and export capacity, affecting about 600,000 barrels of daily oil-refining capacity and leading to a reduction in exports of around 200,000 barrels. The attacks have caused an increase in crude oil prices by adding $2-$3 per barrel of risk premium last week. The strikes have impacted about 900,000 barrels a day of oil refining capacity in Russia and halted about 7% of its refining capacity in the first quarter. Despite this, Russia plans to increase its oil exports through western ports by almost 200,000 barrels per day in March. Oil analysts have highlighted the vulnerability of oil refineries to the drone attacks and anticipate their continuation and expansion in the future.