Oil market prices hover near highs as Russia and Gulf attacks raise supply risk

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Oil prices near highs

Highlights

Brent crude futures drop $1.04 to $108.82 a barrel and U.S. West Texas Intermediate loses 26 cents to $101.15 amid renewed supply concerns.
Ukrainian drone strikes cause fires at St. Petersburg oil terminal exporting 120,000 barrels a day, raising fears of tightened refined product supply.
Attacks on two tankers near Saudi Arabia escalate shipping security risks in the Persian Gulf, threatening continued volatility and elevated oil prices.

Energy attacks keep traders focused on supply risks

As reported by CNBC, oil markets are weighing a new wave of Ukrainian drone strikes on Russian fuel infrastructure alongside fresh attacks on commercial vessels near Saudi Arabia. Brent crude futures fall $1.04 to $108.82 a barrel, while U.S. West Texas Intermediate loses 26 cents to $101.15.

Fires break out at an oil terminal and depot in St. Petersburg after what local authorities describe as a large Ukrainian drone attack on Sunday. St. Petersburg Governor Alexander Beglov says in a Telegram post that the strikes hit the facilities, though the extent of the damage remains unclear.

According to Kpler data cited in the report, the St. Petersburg terminal exports about 120,000 barrels a day of refined products, mainly fuel oil. Any prolonged disruption at the site could tighten product availability even if the immediate operational impact is not yet confirmed.

Truce breakdown adds to regional market tension

Ukraine had briefly paused strikes on Russian energy facilities after President Donald Trump said on Oct. 11 that Kyiv and Moscow had agreed to a truce. That pause appears short-lived after Russia continues attacking Ukrainian energy infrastructure and President Volodymyr Zelenskyy says last week that Kyiv would resume strikes in retaliation.

In the Persian Gulf, two tankers come under attack off Saudi Arabia on Friday, according to incident reports from the United Kingdom Maritime Trade Operations Centre. UKMTO says a small boat fires a rocket-propelled grenade at an unidentified tanker 78 nautical miles northeast of Al Jubayl, while another vessel, the ST3, is hit by an unknown projectile.

The incidents add to broader concerns over shipping security across the Persian Gulf, Strait of Hormuz and Gulf of Oman. With the region central to global crude exports, any further escalation could keep oil prices elevated and reinforce volatility across energy markets.

Our earlier report on surging oil shipping costs explained how conflict-related attacks and higher insurance premiums have sharply lifted tanker rates on key routes such as the Strait of Hormuz and the Red Sea. We noted that these freight costs can become a major component of crude pricing, pushing up fuel and consumer prices while forcing refiners and import-dependent countries to absorb higher transport expenses.

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