Reuters: Ukrainian strikes on Russian oil facilities could benefit US refiners

The latest series of Ukrainian drone strikes targeting Russian refineries and export facilities could push up global refining margins, particularly for U.S. plants where fuel demand remains strong even after the summer season, as per Reuters.

The attacks temporarily disrupted facilities accounting for at least 17% of Russia’s oil refining capacity, or 1.1 million barrels per day. Targets included the Ust-Luga terminal on the Baltic Sea and the Druzhba pipeline, which supplies Belarus, Slovakia, and Hungary.

The strikes mark a significant escalation in the three-year-long conflict. Kyiv has focused on key revenue sources for the Kremlin, while U.S. President Donald Trump has sought to promote a ceasefire agreement.

Earlier in March, both sides agreed to avoid attacks on energy infrastructure. However, Russia violated the agreement by striking Ukrainian energy facilities, including drone attacks on power plants in the north and south of the country.

Reduced domestic refining has forced Moscow to increase oil exports from western ports by 200,000 barrels per day, or 11%, in August, utilizing underloaded Russian refineries. Despite a ban on gasoline exports imposed on July 28, some regions in Russia are already experiencing fuel shortages. Repairs to damaged refineries could take weeks or months, potentially creating shortages in domestic and global markets ahead of winter.

Analysts noted that lower Russian diesel exports could tighten global supply and raise refining profitability, especially for refineries along the U.S. Gulf Coast.

By Khagan Isayev