Ukraine's Attacks on Russian Energy Infrastructure Drive Global Oil Price Surge
Global oil prices have surged due to Ukraine's attacks on Russian energy infrastructure, with Western sanctions further tightening the squeeze. Meanwhile, US President Donald Trump has urged Turkey to halt Russian oil imports.
Ukraine's repeated drone strikes on Russian refineries, pipelines, and export terminals have caused significant damage, disrupting Moscow's oil and gas industry. In response, Russia has imposed a partial ban on diesel exports, further driving up global diesel prices and European refining margins for the fuel.
The EU has also lowered its price cap for Russian oil and refined oil products, aiming to limit Moscow's revenue from energy exports. This move, combined with US pressure on Turkey to stop Russian oil imports, is putting significant strain on Russia's oil industry. The countries involved in the so-called 'shadow fleet' used to circumvent Western sanctions include the UK, Japan, New Zealand, and several EU member states.
Experts warn that the conflict between Russia and Ukraine remains a major risk factor for oil prices and the global economy. Ukraine's strategy of targeting Russian energy infrastructure could potentially strain the Kremlin's finances but may also provoke retaliatory measures and trigger a global oil price shock.
The combination of Ukrainian attacks, Western sanctions, and US pressure on Turkey is putting significant pressure on Russia's oil industry. This could lead to a sustained increase in energy costs for Western economies. As the conflict between Russia and Ukraine continues, the global oil market remains volatile and vulnerable to further disruptions.
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