Another Russian Oil Refinery Hit By Ukrainian Kamikaze Drones
Ukrainian military planners have been ramping up Kamikaze drone strikes against the Russian energy industrial complex this week, including an overnight attack damaging an oil refinery as Western sanctions fail to crush Putin’s oil-rich economy that funds the “special military operation” in Ukraine. This comes despite the US publicly telling the Ukrainians to stop attacking Russian refineries for fear Brent crude prices could spike and worsen the inflation storm in the US ahead of the presidential elections in the fall.
UBS Global Wealth Management Giovanni Staunovo said that if the Ukrainian drone attacks are limited to Russian oil refineries, then this won’t cause great disruptions in the global market.
However, it could only be a matter of time before Ukranians start attacking Russia’s energy-exporting capabilities. If that’s the case, expect an even higher war risk premium to be baked into Brent crude prices.