At the start of the week, oil prices edged upward following targeted strikes on Russian energy facilities. Ukrainian drones were reported to have hit both the Primorsk export terminal and the Kirishi refinery, two linchpins in Russia’s capacity to ship and process crude. While the immediate damage appeared contained, the symbolic weight of these attacks reverberates through a market finely balanced between oversupply concerns and fears of sudden disruption.
Primorsk, Russia’s largest crude export hub on the Baltic Sea, handles around one million barrels per day, making it central to Europe’s seaborne import profile. Even limited interference at this port raises questions about continuity of shipments and the costs of rerouting flows. The Kirishi refinery, with a capacity of roughly 355,000 barrels per day, accounts for close to seven percent of Russia’s refining capability.
Prices responded with Brent stabilising in the mid-$67 range and West Texas Intermediate trading near sixty-three dollars. Gains were modest, just over one percent from the prior week, yet the price action underlines how quickly markets respond to geopolitical risk even when fundamentals such as OPEC+ output increases point to growing supply.
Touchstone Exploration Inc (LON:TXP) is a Canadian-based, international upstream oil and gas company currently active in the Republic of Trinidad and Tobago. Primera Oil and Gas is the Trinidadian subsidiary of Touchstone.
