Strikes on Russia’s refineries raise oil price risks

Further attacks by Ukraine on Russia’s oil refining sector were the major driver of crude prices this week with the price of Brent remaining firmly above $85 per barrel. Reports that the US had urged Ukraine to halt the strikes may have tempered the price gains but it is too soon to tell if these warnings will be heeded. However, if Ukraine’s attacks on Russia’s oil infrastructure ceased, and Russia’s crude exports rose while refineries were offline, the price of crude could come under some downward pressure.