Reuters: Russian refining capacity down by 7% in first quarter due to Ukrainian drone attacks

In response to refinery outages, Russia is set to increase its oil exports through Western ports by almost 200,000 barrels per day in March.

Mar 19, 2024 - 08:04

Reuters: Russian refining capacity down by 7% in first quarter due to Ukrainian drone attacks

Ukrainian drone attacks deep into Russia targeting its oil industry have idled around 7% of Russian refining capacity in the first quarter, according to an analysis by Reuters.

In the past three months, Ukraine has intensified its drone attacks against the Russian oil industry. Over the past week, Ukraine has targeted several Russian oil facilities with drone attacks, aiming to hit the core of Russia’s economy over two years into Moscow’s full-scale invasion of Ukraine.

Brent crude oil briefly surpassed $86 per barrel on Monday for the first time since November, before retreating, as Ukraine escalated its attacks on Russian energy infrastructure, Reuters reported.

Vandana Hari, founder of Vanda Insights, a provider of oil market analysis, commented on the situation, saying, “The strikes on Russian refineries added $2-$3 per barrel of risk premium to crude last week, which remains in place as we start this week with more attacks over the weekend.”

According to Reuters, this disruption in refining capacity has prompted Russia to increase its oil exports through Western ports. Market participants have indicated that Russia plans to boost its oil exports by almost 200,000 barrels per day (bpd) in March, reaching a total of 2.15 million bpd.

On 17 March, drones struck the Slavyansk oil refinery in Russia’s Krasnodar Krai.
On 16 March, drones hit three oil refineries in Russia’s Samara Oblast.
On 15 March, suicide drones attacked an oil refinery in Russia’s Kaluga oblast.
On 13 March, drones hit an oil refinery in Ryazan.
On 12 March, Ukraine carried out a coordinated drone offensive, hitting and damaging at least two Russian oil assets – a refinery in Nizhny Novgorod Oblast and a fuel depot in Oryol.
On 6 March, an oil depot in Kursk came under drone attack.
On 14 February, a Kursk oil depot was ablaze after a drone strike.
On 9 February, kamikaze drones targeted oil facilities in two Russian regions, hitting the Ilsky and Afipsky oil refineries in the Krasnodar region and an oil depot in the Oryol region, causing a severe fire at the Ilsky refinery and damaging a primary processing unit valued.
On 3 February, residents of Volgograd, Russia, reported two explosions, with the Governor stating that Russian air defense units allegedly intercepted drones targeting an oil refinery.
A vacuum distillation column at an oil refinery caught fire in Russia’s Tuapse City overnight on 25 January.
On 18 January, Ukrainian drones attacked an oil depot in the Russian city of Saint Petersburg.
On 31 January, a drone hit an oil refinery in St. Petersburg.
On 18 January, Ukrainian drones attacked an oil depot in the Russian city of Saint Petersburg.

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