Russia to face major oil refinery outages for up to 6 months, analysts say
We return now to the theme of Russia's oil, and the impact of drone strikes on the country's production facilities and exports.
As reported, Donald Trump spoke yesterday of the need for European nation's to stop importing oil from Russia (see 7.02 post), while a succession of Ukrainian attacks have hit refineries in the country (see 10.30 post).
And while EU sources say the bloc will propose banning Russian liquefied natural gas imports a year earlier than planned, reports indicate that Ukraine's strategy of launching attacks on oil refineries is being felt.
Konrad Muzyka, an independent defence analyst and director of Rochan Consulting, carries a series of reports that suggest a number of areas in Russia are suffering something of a fuel crisis - with people complaining of supply shortages and sharp increases in the price of petrol and diesel at the pumps.
Muzyka says the current rate of Ukraine's strikes, if sustained, means Russia is likely to continue facing at least 30% of its refining capacity remaining out of action for up to the next six months.
"Once outages rise above 30%, Russia loses its exportable diesel surplus and is forced to draw down stockpiles," he adds.