Ukrainian drone hits another Russian oil depot

Oil prices found some support as Ukraine continued to attack Russia’s energy facilities with drones, raising supply concerns in the region.

PHOTO: Flags of Russia and Ukraine. Getty Images

A fire broke out at an oil depot in the Kamensky district of Russia’s southern region of Rostov yesterday, its governor Vasily Golubev confirmed.

Several fuel tanks in the energy facility caught fire as a result of the attack, Reuters reported.

“In the Kamensky district, a fire occurred at a fuel depot as a result of a UAV attack,” Golubev said on the Telegram messaging app.

Last week, the Russian air defense system shot down 28 drones over six regions near the Russia-Ukraine border, including Volgograd, Rostov, Belgorod, Voronezh, Bryansk, and Kursk regions, the country’s defense ministry said.

These regions, known for hosting key energy infrastructures, have faced multiple drone attacks since Moscow’s incursion into Ukraine in February 2022.

Oil prices have moved higher following these attacks as “geopolitical risks continue to hover over the [oil] market,” ANZ Bank’s senior commodity strategist Daniel Hynes said.

Kyiv has ramped up its airstrikes on Russian oil and energy facilities to reduce the Russian military's fuel supplies, according to oil market analysts. These attacks have raised concerns about supply disruptions in the global oil market, which is already grappling with OPEC+ production cuts and geopolitical conflicts in the Middle East and Libya.

By Aparupa Mazumder

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