Oil Prices Remain Near Recent Highs After Attacks on Energy Infrastructure
Crude oil prices remained near recent highs on Sunday, October 18, as traders assessed reports of Ukrainian drone strikes on Russian oil facilities and attacks on tankers in the Persian Gulf. Brent crude futures fell $1.04 to $108.82 a barrel, while U.S. West Texas Intermediate declined 26 cents to $101.15.
Fires broke out at an oil terminal and depot in St. Petersburg following a large wave of Ukrainian drone strikes, according to the city’s governor, Alexander Beglov. The extent of the damage was not immediately clear. Data from Kpler indicates that the terminal exports about 120,000 barrels a day of refined petroleum products, primarily fuel oil. Any disruption to its operations would depend on the damage and how quickly the facility could resume normal activity.
The strikes followed a brief pause in Ukrainian attacks on Russian energy sites. On October 11, U.S. President Donald Trump said Kyiv and Moscow had agreed to a truce covering energy infrastructure. Russia continued striking Ukrainian energy facilities after that announcement, according to the account provided. Ukrainian President Volodymyr Zelenskyy said last week that Kyiv would resume attacks on Russian facilities in response.
Shipping security was also in focus after two tankers came under attack off Saudi Arabia on Friday, according to incident reports from the United Kingdom Maritime Trade Operations Centre. In one incident, a small boat fired a rocket-propelled grenade at an unidentified tanker about 78 nautical miles northeast of Al Jubayl. In another, a tanker identified as the ST3 was struck by an unknown projectile. The reports did not identify who carried out either attack.
The incidents added to concerns about the movement of oil through the Persian Gulf and surrounding waterways. For traders, the immediate questions are whether the attacks caused lasting damage, whether further strikes will follow and how shipping through the region will be affected.