Oil prices climbed in early Asian trading on Monday, as Russia attacked a key heating plant in Kherson and Ukraine targeted a Russian oil refinery. The strikes dampened hopes of a Russia-Ukraine peace deal, even as Trump and Zelensky claimed progress on a 20-point peace plan.
At the time of writing, Brent crude had risen by 0.86% to $61.16, while WTI was trading 0.81% higher at $57.20. This recent rise in oil prices comes on the back of a 2% drop on Friday, as optimism over a peace deal grew alongside oversupply fears.
The Russian attack on Naftogaz’s Kherson Combined Heat and Power Plant inflicted “significant damage” and injured at least one employee, who has been hospitalized. The plant had been a critical source of heating for tens of thousands of residents, and its targeting underscores Moscow’s continued focus on Ukrainian infrastructure nearly four years into its full-scale invasion.
The Ukrainian strike on the Syzran oil refinery in Russia’s Samara region took out the only primary oil processing unit at the refinery. It was reportedly one of two energy-related facilities that were targeted, with the other being the refinery’s ELOU-AVT-6 unit.
These are just the latest in a string of attacks on the energy sector of both sides, with Ukraine attempting to pressure Russia’s energy revenues while Russia attempts to break the morale of the Ukrainian population as winter bites.
Even as the risk of a supply shock, not just in Russia but also Ukraine and Nigeria, rises, the fundamentals remain bearish – with most analysts expecting an oil glut in 2026.
By Charles Kennedy for Oilprice.com
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