Ukraine Launches Record Drone Attacks on Russian Oil Infrastructure

UPDATE: Ukraine has launched a record number of drone attacks against Russian oil infrastructure, escalating the ongoing conflict as peace negotiations remain on the horizon. In November alone, Ukraine’s military targeted Russian refineries at least 14 times, marking a significant intensification in efforts to disrupt Moscow’s energy revenue.

These attacks coincide with strikes on Black Sea oil-loading facilities and tankers carrying Russian crude. The Ukrainian military’s operations come amid a broader energy war, as both nations seek an advantage following months of stalemate on the battlefield.

According to data compiled by Bloomberg, the recent strikes included targeting two tankers in the Black Sea. Additionally, a previous tanker that had transported Russian petroleum suffered severe damage from multiple explosions off the coast of Dakar, Senegal, late last week.

In a critical incident, unmanned boats damaged one of the moorings at the Caspian Pipeline Consortium (CPC) terminal, the largest outlet for Kazakh oil, rendering it inoperable. The CPC acknowledged that “any further operations are impossible” at the damaged mooring, leaving the terminal with just one operational mooring due to ongoing maintenance.

Kazakhstan, which shipped an average of nearly 1.5 million barrels per day through CPC, has activated alternative export routes to maintain production amidst these disruptions. The nation condemned the attacks on civilian energy infrastructure, labeling them as “unacceptable” and warning they threaten global energy security.

Meanwhile, Russian forces continue their own assaults on Ukrainian energy infrastructure and civilian areas, aiming to diminish morale as winter approaches. The U.S. administration is pushing for a peace deal, with President Putin indicating that Moscow will cease hostilities only when Ukrainian troops withdraw from occupied areas in the Donetsk region.

The intensity of Ukraine’s attacks comes at a critical time for global oil markets, which are bracing for a period of oversupply. Brent futures briefly spiked amidst concerns that CPC outages could exacerbate the surplus. Estimates suggest that Russia’s refinery runs in November fell to about 5 million barrels per day, down from historical levels of between 5.3 million and 5.5 million barrels per day during late autumn.

The ongoing drone strikes raise significant uncertainties regarding the operational capacity of Russian refineries post-repair, further clouding the outlook for crude throughput in Russia. As the conflict escalates, the effects on global energy markets and security are becoming increasingly palpable.

Stay tuned for further updates as the situation develops.