Oil Prices Climb After Ukraine Drone Strikes Disrupt Russian Supply

Oil Markets React

Oil prices rose sharply on Friday following drone attacks by Ukraine targeting Russia’s energy infrastructure, which reduced fuel exports. Brent crude settled at $70.13 per barrel, up 71 cents or 1.02%, while U.S. West Texas Intermediate (WTI) rose 74 cents to $65.72 per barrel, a 1.14% increase. Both benchmarks are recording their largest gains since mid-June.

Impact of Drone Attacks and Export Restrictions

“Markets remain focused on the Russia-Ukraine conflict,” said John Kilduff, partner at Again Capital. “These drone attacks are beginning to have a cumulative effect.”

In addition, Russia plans to introduce a partial diesel export ban until the end of the year and extend its existing gasoline export ban, according to Deputy Prime Minister Alexander Novak. Reduced refining capacity has led to shortages of certain fuel grades across Russian regions.

Global Implications

U.S. government measures are also influencing the market. Andrew Lipow, president of Lipow Oil Associates, noted that President Trump continues to pressure allies to cut Russian oil imports, potentially affecting countries like India and Turkey.

Heightened tensions from NATO warnings of responses to airspace violations have increased concerns about further sanctions on Russia’s oil industry, said ANZ analyst Daniel Hynes.

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