Oil Prices Climb as Ukrainian Strike Hits Major Russian Refinery
Attack on Rosneft's Samara facility is the latest in a campaign tightening global fuel markets and adding a geopolitical risk premium to crude.
Global oil prices are climbing as escalating geopolitical tensions rattle supply markets, following a confirmed Ukrainian drone strike on a major Rosneft-owned oil refinery in Russia’s Samara region over the weekend.
The attack adds to a volatile week for energy markets, which saw crude benchmarks surge over 2% on Friday. West Texas Intermediate (WTI) crude rose 2.39% to settle at $60.09 a barrel, while Brent crude, the international benchmark, climbed 2.19% to $64.39 in reaction to separate strikes on Russian energy infrastructure.
Overnight on November 15-16, Ukrainian drones targeted the Novokuibyshevsk oil refinery, a critical facility with an annual processing capacity of over 8 million tons of crude. The plant is a key producer of high-grade fuels, including aviation fuel for Russian military aircraft, according to reports from Ukrainian media outlet RBC-Ukraine. Local sources reported multiple explosions and a significant fire at the site.
This incident is the latest in a coordinated and intensifying Ukrainian campaign against Russia’s energy sector, designed to disrupt fuel supplies to its military and choke off a primary source of state revenue. The strategy appears to be impacting the market, with an estimated 800,000 barrels per day of Russian refining capacity—roughly 10-20% of the country's total—already taken offline by similar attacks over the past month.
Friday's price jump was largely attributed to a major Ukrainian drone and naval attack on the Black Sea port of Novorossiysk, which temporarily halted oil exports from a vital terminal for both Russian and Kazakh crude. Another strike was claimed on the Saratov refinery, further underscoring the vulnerability of Russia's sprawling energy infrastructure.
“The market is clearly beginning to price in a sustained geopolitical risk premium,” said one commodities strategist. “While the immediate impact is on refined products like diesel and jet fuel, the persistent threat to Russian output could have broader implications for global crude supply, especially if Russia is forced to curb crude exports due to a lack of domestic refining and storage capacity.”
Analysts note that while the broader market outlook contains mixed signals, including rising U.S. crude inventories, the drumbeat of attacks on Russian facilities is providing a powerful bullish catalyst. The market is also bracing for new U.S. sanctions targeting Russian oil giants Lukoil and Rosneft, which are set to take effect on November 21 and could further tighten supply.
As the attacks move from a sporadic nuisance to a systemic campaign, energy traders will be closely watching for any signs of further escalation or more significant disruptions to Russia’s ability to export crude oil to global markets.