Ukraine Resumes Russian Refinery Attacks Amid Energy Volatility
Ukraine has resumed attacks on Russian oil refineries, threatening diesel exports while OPEC+ maintains output targets and European gas prices rise.
The Cabinet of Ministers of Ukraine has resumed attacks on Russian oil refineries, a move that threatens the stability of diesel exports and casts doubt on the Federal Government of Russia's export targets for November. These strikes are expected to provide a floor to gasoil cracks as the energy market faces increased instability.
Global oil markets remain volatile, influenced by the upcoming midterm elections in the United States. In response to current market conditions, OPEC+ members met over the weekend and decided to keep oil output targets unchanged for December. However, several members are currently producing below these targets due to ongoing disruptions in the Persian Gulf.
Simultaneously, gas prices in Europe have strengthened. Market analysts expect continued volatility in Northwest Europe due to tight supply-demand balances and forecasts of colder-than-usual weather, which may result in significant storage draws.
