Ukraine hits Russian oil depot in drone strike
Crude oil prices found some support as supply disruption concerns resurfaced following a Ukrainian drone attack on a Russian oil depot in the Saratov region.
PHOTO: Oil pumps with the Russian flag in the background. Getty Images
The drone attack caused a “large-scale” fire at the Kristall oil storage facility in the city of Engels, the General Staff of the Armed Forces of Ukraine said on the Telegram messaging platform.
“Numerous explosions were recorded in the area of the target, and a large-scale fire broke out,” Ukraine’s army said.
According to the Ukrainian army’s General Staff, the oil depot that caught fire supplied fuel to the Engels-2 military airfield, where Russia’s strategic aviation centre is situated.
The escalation comes amid weeks of cross-border hostilities between the two nations. This news has put upward pressure on Brent’s price as the region is known for hosting key Russian energy facilities.
Last month, a Ukrainian drone attack caused a fire at an oil depot in the Bryansk region of western Russia.
While the market awaits a Russian retaliation, it is also preparing for stricter sanctions against Russian oil firms, expected to come into action once President-elect Donald Trump takes his official oath at the White House later this month.
By Aparupa Mazumder
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