WS #15342
Ukraine's Defense Ministry confirmed that strikes have disabled more than 51% of Russia's oil-refining capacity, leading to domestic fuel shortages and export restrictions. This supply destruction coincides with the US Strategic Petroleum Reserve falling to its lowest level since 1982 (283 million barrels). The convergence of these events creates a severe supply-side risk premium for global oil prices, benefiting energy producers while threatening to reignite inflationary pressures just as yields hit multi-decade highs.
Russia-Ukraine Energy Infrastructure Shock
Ukraine's Defense Ministry confirmed that strikes have disabled more than 51% of Russia's oil-refining capacity, leading to domestic fuel shortages and export restrictions. This supply destruction coincides with the US Strategic Petroleum Reserve falling to its lowest level since 1982 (283 million barrels). The convergence of these events creates a severe supply-side risk premium for global oil prices, benefiting energy producers while threatening to reignite inflationary pressures just as yields hit multi-decade highs.