World News
Weekend Ukraine Drone Strikes Stir Supply Tensions, Oil Rises
The seemingly endless attacks and counterattacks between Russia and Ukraine – the latest being another round of strikes on Russian energy facilities over the weekend – kept concerns of supply disruptions in the forefront and on Monday caused another round of modest gains for oil.
Brent settled up 45 cents at $67.44 per barrel, while West Texas Intermediate settled up 61 cents at $63.30 per barrel.
Some of the 361 drones launched by Ukraine triggered a brief fire at the Kirishi oil refinery in Russia's northwest; Surgutneftegaz's Kirishinefteorgsintez refinery, one of the top two refineries in Russia, was also among the targets.
That, combined with Ukraine causing other Russian infrastructure damage, prompted Phil Flynn, senior marketing analyst with Price Futures Group Inc., to state, "Behind the scenes there are a lot of concerns around heavy oil and tight diesel supplies, keeping the market supported."
JPMorgan analysts agreed, writing that "The attack suggests a growing willingness to disrupt international oil markets, which has the potential to add upside pressure on oil prices."
Adding to the tensions was U.S. president Donald Trump, who warned he may impose "major" sanctions on Russian exports and pressed NATO allies to stop buying petroleum products from Moscow; he also reiterated an earlier threat to impose tariffs of up to 100 percent on China and India for continuing to purchase Russian crude.
Oil trading on Monday was also said to be supported by a decline in U.S. crude inventories as well as news of solid refinery demand in China.
In related oil news on Monday, Ukrainian energy consultancy Enkorr reported that effective October 1, Ukraine will restrict imports of Indian diesel and will check samples of the diesel in laboratories to detect the presence of components typical of Russia's crude grades.
Enkorr noted that Indian diesel accounted for about 18 percent of all Ukrainian diesel imports in August.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 481.50 | 4.50 | 672.50 | 1.00 |
| Rotterdam | 460.50 | 7.50 | 671.50 | 1.50 |
| Houston | 485.50 | 2.50 | 679.00 | 6.50 |
| Fujairah | 480.00 | 4.50 | 728.00 | 5.00 |
| Global 20 Ports Average | 516.50 | 0.00 | 760.00 | 1.50 |
| Global 4 Ports Average | 477.00 | 1.00 | 688.00 | 3.00 |
| Global Average Bunker Price | 558.00 | 0.50 | 801.50 | 2.00 |
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