Oil gains amid targeted attacks on Russian energy facilities

Brent’s price increased as supply disruption concerns intensified in eastern Europe, with Russia and Ukraine now specifically targeting energy facilities in the bordering areas.

PHOTO: Getty Images

The Russian government reportedly repelled several drones over the Kursk and Belgorod regions yesterday, it said on the Telegram messaging app. These regions, known for hosting key energy facilities, have faced multiple drone attacks since Moscow’s incursion into Ukraine in February 2022.

“Five aircraft-type UAVs [unidentified aerial vehicles] were destroyed by air defense systems on duty. Three UAVs were destroyed over the territory of the Belgorod region and two over the territory of the Kursk region,” Russia’s Ministry of Defense said.

In a retaliatory strike, the Russian armed forces hit Ukrainian energy facilities including power substations and storage units late yesterday, the country’s state-owned media agency TASS reported.

The market will be “on edge as the fighting between Russia and Ukraine threatens to disrupt supply,” ANZ Bank’s senior commodity strategist Daniel Hynes remarked.

Ukraine has ramped up its airstrikes on Russian energy infrastructure and oil facilities to curb the Russian military's fuel supplies, according to oil market analysts. These attacks have raised concerns about supply disruptions in the global oil market, which is already grappling with OPEC+ production cuts and geopolitical conflicts in the Middle East.

By Aparupa Mazumder

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