US has urged Ukraine to halt strikes on Russian oil refineries

[BumRushDaShow]

Source: Financial Times

4 hours ago


The US has urged Ukraine to halt attacks on Russia’s energy infrastructure, warning the drone strikes risk driving up global oil prices and provoking retaliation, according to three people familiar with the discussions. The repeated warnings from Washington were delivered to senior officials at Ukraine’s state security service, the SBU, and its military intelligence directorate, known as the GUR, the people told the Financial Times.

Both intelligence units have steadily expanded their own drone programmes to strike Russian targets on land, sea and in the air since the start of the Kremlin’s full-scale invasion in February 2022. One person said that the White House had grown increasingly frustrated by brazen Ukrainian drone attacks that have struck oil refineries, terminals, depots and storage facilities across western Russia, hurting its oil production capacity.

Russia remains one of the world’s most important energy exporters despite western sanctions on its oil and gas sector. Oil prices have risen about 15 per cent this year, to $85 a barrel, pushing up fuel costs just as US President Joe Biden begins his campaign for re-election.

Washington is also concerned that if Ukraine keeps hitting Russian facilities, including many that are hundreds of miles from the border, Russia could retaliate by lashing out at energy infrastructure relied on by the west. This includes the CPC pipeline carrying oil from Kazakhstan through Russia to the global market. Western companies including ExxonMobil and Chevron use the pipeline, which Moscow briefly shut in 2022.


Read more: https://www.ft.com/content/98f15b60-bc4d-4d3c-9e57-cbdde122ac0c

[blue-wave]

1. Yup, read somewhere not too long ago

That the Ukrainian strikes on Russian oil has crippled about 15% of Russian oil production. That's a pretty big chunk out of the already crippled Russian economy. Likely a factor in rising world oil prices. Personally, I'm willing to pay more at the pump until Ukraine wins.

[Omnipresent]

3. You might be willing to pay more, but our President could be made to pay for it in November.

[blue-wave]

12. I certainly hope not

[RandySF]

2. Don't listen to them.

[Oopsie Daisy]

4. "Making it worse? How could it be any worse? - Jehovah, Jehovah, JEHOVAH!!"

[2naSalit]

5. Should prompt...

More aid then. If they want the destruction of refineries to stop, maybe they should send more aid without interruption.

[Firestorm49]

6. Well you sure know what is behind the lines on this article. Hint: Big oil is speaking up.

[EX500rider]

13. I think "Big oil" likes higher prices actually

[PortTack]

7. Russian oil is supposed to be sanctioned.....if true then how is that driving up prices??!

[Igel]

16. Many countries don't embargo Russian oil.

And if Russia can't refine enough oil for domestic consumption, it will need to buy refined products on the open market; even if it does produce enough for local consumption, it may be that it exports finished products to some countries.

Outside of Russia there's one market. The only impediment to fluid flow is friction--costs of transporting the stuff. The embargo "boundary" with Russia is sadly permeable.

[Eyeball_Kid]

8. The US is refusing to give military aid to UKR,

and they think that UKR will listen to them? Give me a break. Pony up the military aid, and they might want to listen a little harder. This is lunacy. The US is cutting off both military aid AND a UKR tactical decision to attack Russia? Who are the nutbags in the Administration who think that this is a good plan?

[Kennah]

9. Ukrainians dying, but hey oil prices are high. Oy. Priorities.

[Bayard]

10. I really doubt that besieged Ukraine is worried about oil prices elsewhere

They are exploiting a chink in Russia's armor.

Of course, people are screaming about oil prices in the U.S. because big oil companies aren't about to take a hit to their huge profit margins. But they'll still blame Biden and, "inflation."

[Hikerchick57]

11. My thoughts too, they're fighting for their survival.

[EX500rider]

14. I think higher prices increase their profits, costs of production did not rise, just the price of oil

[Igel]

15. self-delete n/t