WS #15224
Oil prices remain volatile and elevated, hovering around $100 per barrel, driven by a dual supply shock. Ukrainian drones have struck four Russian oil refineries, reducing output, while the US government is pressuring Europe to release diesel reserves amid threats of an export ban from the Trump administration. Russia is considering partial removal of diesel export restrictions to manage overproduction, but the geopolitical premium remains firmly embedded in prices, benefiting energy producers while hurting airlines and logistics.
Energy Supply Shock
Oil prices remain volatile and elevated, hovering around $100 per barrel, driven by a dual supply shock. Ukrainian drones have struck four Russian oil refineries, reducing output, while the US government is pressuring Europe to release diesel reserves amid threats of an export ban from the Trump administration. Russia is considering partial removal of diesel export restrictions to manage overproduction, but the geopolitical premium remains firmly embedded in prices, benefiting energy producers while hurting airlines and logistics.