Oil Prices Rise Gradually as Ukraine's Drones Disrupt Russia's Fuel Supply

Oil prices ticked higher this week, stirring up worries about shaky supplies from Russia. Traders watched closely after Ukraine's recent drone strikes hit key energy sites, raising fears of bigger export cuts. It's a reminder that far-off conflicts can nudge up costs at your local gas station.

The trouble kicked off in late September 2025, when Ukrainian forces ramped up attacks on Russian refineries. Over the past two months, they've targeted more than 80 spots, including 16 out of Russia's 38 major oil plants. One big hit came at the Ust-Luga terminal near St. Petersburg, where a drone strike sparked a massive fire on September 24. That facility handles about 100,000 barrels a day, mostly for overseas sales.

Russian officials confirmed the damage, and it forced quick fixes that slowed shipments. In response, Russia's Deputy Prime Minister Alexander Novak announced on September 25 that the country would slap partial bans on diesel exports through December 31, 2025. They also stretched an existing gasoline export halt into next year.

These moves aim to ease shortages at home, where fuel prices have soared to record levels in places like Moscow. Regions from the capital to Leningrad are now limiting sales to keep locals supplied. Ukraine's top commander, Oleksandr Syrskyi, noted the strikes have already tangled up Russia's military logistics, hitting fuel deliveries hard.

This all matters because Russia pumps out around 10% of the world's oil, and any snag there ripples globally. Prices for Brent crude, a key benchmark, climbed about 2% to $72 a barrel by October 1, up from last week's dip. OPEC+ is adding barrels to offset this, but if disruptions grow, we could see higher heating bills or pricier flights soon.

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