Oil prices surged on Friday as Moscow moved to restrict fuel exports following Ukrainian strikes on Russia’s critical energy infrastructure, heightening global supply concerns.
Brent crude rose 4% to $68.76 per barrel, up from the previous close of $66.12, while U.S. benchmark West Texas Intermediate (WTI) inched up to $65.08 from $65.07.
Ukraine has intensified drone attacks on Russian refining and distribution facilities, disrupting operations and fueling shortages. Strikes targeted the Salavat petrochemical complex in Bashkortostan, one of Russia’s largest plants operated by Gazprom, as well as oil depots in the Bryansk and Samara regions. Regional Governor Radiy Khabirov confirmed the Salavat facility was hit early on September 24.
Amid these disruptions, Russia is grappling with reduced refining capacity and fuel scarcity. Deputy Prime Minister Aleksandr Novak announced that Moscow would extend its gasoline export ban until year-end and impose restrictions on diesel exports for non-producers over the same period. The measures follow a temporary ban between July 28 and August 31, which failed to halt record fuel price hikes.
Domestic fuel prices remain under pressure due to refinery outages and rising demand, particularly from the agricultural sector. Russia, one of the world’s top energy exporters, produces more than 40 million tons of gasoline annually.
Adding to upward momentum, U.S. crude stockpiles declined unexpectedly. The U.S. Energy Information Administration reported a 600,000-barrel drawdown last week, bringing commercial inventories to 414.8 million barrels, against forecasts of an 800,000-barrel build.
Meanwhile, Iraq’s Kurdistan Regional Government announced the reopening of its oil wells for export under an agreement with oil producers, Iraq’s Oil Ministry, and state-owned SOMO. The KRG’s Ministry of Natural Resources said exports would resume within 48 hours, helping ease some supply concerns and tempering price gains.
