Ukraine Drone Strikes Disable Up to 28% of Russia's Refining Capacity, Lifting Fuel Prices
Updated
Updated · The New York Times · Aug 19
Ukraine Drone Strikes Disable Up to 28% of Russia's Refining Capacity, Lifting Fuel Prices
3 articles · Updated · The New York Times · Aug 19
Summary
Up to 28% of Russia’s refining capacity has been knocked out from last year’s level by Ukraine’s drone campaign, adding a fresh supply shock to fuel markets.
That disruption helps explain why pump prices have stayed elevated even as crude fell about 25% from its April peak by late July; gasoline dropped only about 9% after peaking near $4.50 a gallon in May.
With hopes for Iran peace fading again, U.S. fuel prices resumed climbing, leaving national gasoline at $4.07 a gallon and diesel at $5.47.
The key gauge is the refining “crack spread” — not crude alone — because tighter refining capacity can keep gasoline and diesel prices high even when oil retreats.