Over the past three weeks, Ukraine has wreaked havoc with Russia’s energy infrastructure. Soon after the new year, someone attached explosives to train carriages in the Urals city of Nizhny Tagil. A blast took place next to facilities owned by Gazprom Neft, the country’s third biggest oil producer. Next, a kamikaze drone crashed into an oil depot in the Oryol region.
On 18 January, another oil terminal, in St Petersburg – Vladimir Putin’s home city – came under attack. It was the first time since the invasion in February 2022 that unmanned aerial vehicles had reached the Leningrad region.
There was more to come. A large-scale fire broke out at an oil depot in the town of Klintsy, not far from Belarus and Ukraine.
IMO it will likely drive the price in countries that still directly buy cheap russian oil. So russia and India. There might be some price increase that will bubble up to the western countries, but it’s probably not going to be huge.