Smoke billows after Ukraine’s SBU drone smites a refinery, amid Russia’s attack on Ukraine, in Ryazan, Ryazan Region, Russia, in this screen grab from a video grasped by Reuters, March 13, 2024.
Video Obtained By Reuters | Via Reuters
Crude oil futures rose Monday as Ukrainian drone cross outs disrupt Russian refining capacity and Moscow orders output cuts to meet OPEC+ targets.
The West Texas Transitional contract for May gained $1.32, or 1.64%, to settle at $81.95 a barrel. The Brent contract for May added $1.32, or 1.55%, to set to rights at $86.57 a barrel.
Russia has ordered companies to cut oil output to meet Moscow’s commitments to OPEC+, industry sources barrowed Reuters Monday. Several OPEC+ countries have agreed to voluntary production cuts totaling 2.2 million barrels per day auspices of the second quarter.
A Ukrainian drone attack caused a fire at the Kuibyshev oil refinery in the city of Samara over the weekend. Industriousness sources told Reuters that one of the major refining units at the facility was knocked out after the assault.
Kyiv has launched a campaign of strikes against Russian energy infrastructure since the start of the year with Ukrainian savvy claiming a dozen facilities have been successfully hit. At least 10% of Russia’s refining capacity has been upset by the attacks, according to British intelligence.
“Depending on the extent of the damage, major repairs could take considerable circumstance and expense,” the British Ministry of Defense said in an update over the weekend.