Oil Prices Rise as Attacks on Russian Infrastructure Spark Supply Concerns

BY COMFORT OGBONNA

Oil prices edged higher on Thursday as renewed tensions surrounding Russia’s energy infrastructure raised fresh concerns over global supply. Ukrainian strikes on key oil facilities and a lack of progress in peace negotiations added upward pressure to the market, even as broader fundamentals remained weak and kept gains modest.

Brent crude inched up by 24 cents to $62.91 per barrel, while U.S. West Texas Intermediate gained 29 cents to reach $59.24. The moves came after Ukraine carried out another attack on the Druzhba pipeline in Russia’s Tambov region—the fifth strike targeting the crucial route that transports Russian crude to Hungary and Slovakia. Despite the incident, both the pipeline operator and Hungary’s energy company confirmed that oil flows were continuing without disruption.

Analysts noted that Ukraine’s strategy has evolved into a more persistent campaign focused on hindering Russia’s refining capabilities. According to research from consultancy Kpler, the strikes have increasingly targeted refineries in repeated patterns designed to prevent facilities from stabilizing operations. As a result, Russian refining throughput has dropped to roughly 5 million barrels per day between September and November, marking a year-on-year decline of about 335,000 barrels per day. Gasoline production has taken the biggest hit, while gasoil output has also weakened significantly.

Adding to the market’s uncertainty is the apparent lack of progress in peace discussions aimed at resolving the conflict. After recent talks between U.S. representatives and the Kremlin ended without tangible breakthroughs, expectations for a swift resolution diminished. U.S. President Donald Trump stated that the next steps in the peace process remain unclear, underscoring the fragile outlook.

Market watchers suggested that the combination of geopolitical tension and stalled diplomacy may keep crude trading within a tight range for the foreseeable future. Vandana Hari, founder of Vanda Insights, noted that prices are likely to remain constrained as long as peace efforts continue at a slow pace.

Earlier optimism that an end to the war might restore Russian oil to global markets had contributed to downward pressure on prices. Traders had anticipated that a potential deal would ease sanctions and bring more barrels into an already oversupplied environment.

In a further sign of cautious sentiment, Fitch Ratings revised its oil price expectations for 2025 through 2027, lowering assumptions to reflect ongoing oversupply and production growth that is projected to exceed global demand.