Increased Oil Prices and Threat of Nuclear War: Impact of Drone Attacks in Russia

Increased Oil Prices and Threat of Nuclear War: Impact of Drone Attacks in Russia

2024-03-13 14:36:33
2024-03-13 22:36 Compiled by Tang Shujun of Economic Daily/Comprehensive Foreign News

CNBC reported that oil prices rose regarding 2% intraday on the 13th as news broke that multiple refineries in Russia were attacked by Ukrainian drones, disrupting production. In addition, Russian President Vladimir Putin once once more threatened that Russia is ready for nuclear war.

Russian oil company Rosneft has shut down two facilities at its Ryazan refinery following a drone attack sparked a fire, people familiar with the matter told Reuters. At the same time, operations at the Novoshakhtinsky oil production plant in the Rostov region were suspended because a drone was shot down by the Russian air defense system and fell into the plant. Another major refinery, Lukoil’s NORSI refinery facility in the Nizhny Novgorod region, was also attacked by drones and set on fire on the 12th.

As the news spread, the increase in international oil prices expanded to more than 2%. Brent crude oil futures rose 2.4% intraday on the 13th to US$83.87 per barrel.

Almost all Western countries have stopped importing most Russian energy products, so that most Russian oil products now flow to mainland China, India, Turkey and other places. However, due to the global nature of the oil market, Russia can still exert a significant influence on international oil prices. The disruption in Russian fuel exports has led to recent increases in global diesel and gasoline prices, but crude oil prices have remained relatively stable.

The Wall Street Journal (WSJ) pointed out that it is difficult to estimate the impact of drone attacks on Russia’s military fuel supply. Refineries are vital to Russian military operations because tanks, warships and military aircraft require refined oil products such as gasoline, diesel and jet oil.

Putin said on the 13th that the recent surge in drone attacks in Russia was partly due to the intention of foreign forces to interfere with the Russian presidential election. He also threatened to use nuclear weapons to defend sovereignty.

Russian President Vladimir Putin once once more threatened that Russia is ready for nuclear war.european news agency

Since launching his military invasion of Ukraine in February 2022, Putin has repeatedly mentioned his readiness to use nuclear weapons, most recently in his State of the Union address last month. At that time, he warned Western countries that if they intensify their involvement in the Ukrainian war, they may risk provoking nuclear weapons. risk of war.

Ukraine Russia Russia-Ukraine War

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