WS #16936
Ukrainian precision strikes have knocked 15 of Russia's 38 major oil refineries offline, reducing processing capacity by over 55% and causing $23 billion in damage. This supply shock is driving a sharp divergence in energy markets: upstream producers and shipping firms are rallying on the disruption, while downstream refiners and airlines face margin compression and higher fuel costs. The EIA's report of refineries shifting away from gasoline to middle distillates further complicates the supply picture.
Russia Oil Refinery Strikes
Ukrainian precision strikes have knocked 15 of Russia's 38 major oil refineries offline, reducing processing capacity by over 55% and causing $23 billion in damage. This supply shock is driving a sharp divergence in energy markets: upstream producers and shipping firms are rallying on the disruption, while downstream refiners and airlines face margin compression and higher fuel costs. The EIA's report of refineries shifting away from gasoline to middle distillates further complicates the supply picture.