Crude oil prices remained near recent highs on Sunday as markets reacted to renewed Ukrainian attacks on Russian energy infrastructure and new incidents involving tankers in the Persian Gulf. Brent crude futures, the international benchmark for oil prices, fell by $1.04 to settle at $108.82 per barrel. U.S. West Texas intermediate futures, the primary benchmark in the United States, dropped 26 cents to $101.15 per barrel.
The price action followed a massive wave of drone strikes launched by Ukraine on Sunday, which resulted in fires at an oil terminal and depot in St. Petersburg. Alexander Eggvlov, the governor of St. Petersburg, confirmed the incidents in a post on Telegram. According to data from Kpler, the terminal exports approximately 120,000 barrels per day of refined products, primarily fuel oil. The extent of the damage to the facility remains unclear.
These strikes mark a shift in the conflict's dynamics regarding E targets. Ukraine had previously paused attacks on Russian E facilities after President Donald Trump declared on Oct. 11 that Kyiv and Moscow had agreed to a truce. However, Russia continued to strike Ukrainian E infrastructure following that announcement. President Volodymyr Zelenskyy stated last week that Kyiv would resume strikes on Russian facilities in retaliation.
Simultaneously, tensions in the Middle East contributed to market volatility. Incident reports from the United Kingdom Maritime Trade Operations Centre (UKMTO) indicated that two vessels came under fire off the Saudi Arabian coast within the Persian Gulf on Friday. UKMTO reported that a small boat fired a rocket-propelled grenade at an unidentified tanker located 78 nautical miles northeast of Al Jubayl. A separate incident involved the tanker ST3, which was hit by an unknown projectile.
These attacks are part of a broader pattern where Iran has escalated strikes on tankers in the Persian Gulf, Strait of Hormuz, and Gulf of Oman. The stated aim of these actions is to choke off crude oil E from the region.