International Oil Prices Rise Nearly 3% on Inventory Decline and Ukraine-Russia Attacks... Highest in 4 Months

Ukraine, Russian Oil Refinery Drone Attacks
US EIA Announces Crude Oil Inventory Decline

International oil prices surged nearly 3% to reach their highest level in four months, driven by a decline in U.S. crude oil inventories and news of a drone attack by Ukraine on Russian refining facilities.

On the 13th (local time) at the New York Mercantile Exchange, the April delivery futures price for West Texas Intermediate (WTI) crude oil closed at $79.72 per barrel, up $2.16 (2.8%) from the previous day.

Brent crude oil May delivery futures closed at $84.03 per barrel on the London ICE Futures Exchange, up $2.11 (2.6%) from the previous trading day. This marks the highest closing price in four months since November 6 of last year.

Concerns over supply disruptions grew as Ukraine launched a drone attack on Russian refining facilities. Andrew Lipow, president of Lipow Oil Associates, stated, "Ukraine's drone attack has damaged Russia's refining capacity," adding, "This means Russia's diesel exports will decrease, and Russia may begin importing gasoline. This will impact global prices."

The news of a decrease in U.S. crude oil inventories also heightened supply concerns. The U.S. Energy Information Administration (EIA) reported that crude oil inventories fell by 1.5 million barrels compared to the previous week. The larger-than-expected inventory decline intensified worries about potential supply disruptions.