Ukrainian drone hits oil depot in Russia
Oil prices found some support as supply disruption concerns resurfaced over the weekend following another Ukrainian drone attack on an oil depot in Russia’s southern region of Rostov Oblast.
PHOTO: Flags of Russia and Ukraine. Getty Images
A Ukrainian drone hit the Atlas oil depot in the Kamensky district of Russia’s Rostov region, the Ukrainian army’s General Staff said on its official Telegram channel.
The escalation comes amid weeks of cross-border hostilities between the two eastern European nations. This news has put upward pressure on Brent’s price as the region is known for hosting key Russian energy facilities.
Rostov region Governor Yury Slyusar also confirmed the attack on Telegram.
The Atlas oil depot previously came under Ukraine’s attack earlier this year. It is a part of the Russian military-industrial complex which supplies petroleum products to the Russian army, according to the statement.
The latest attack “resulted in a fire at the facility, with at least two areas of ignition reported,” the General Staff of Ukraine’s army said.
Ukraine also destroyed a radar station in Russia hosting the Russian Buk-M3 anti-aircraft missile system, the country’s army 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.
Earlier this month, Ukraine fired US-made long-range missiles deep into Russian territory. Russia also deployed a new type of medium-range missile on the Ukrainian city of Dnipro.
Over the weekend, geopolitical tensions “drew significant attention,” Ole Hensen, head of commodity strategy at Saxo Bank said, as tensions between Russia and the West “escalated following Russia’s lowered threshold for nuclear weapon use, raising geopolitical stakes beyond those witnessed,” he added.
By Aparupa Mazumder
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