Ukraine's Armed Forces General Staff reported that in the early hours of September 20, Ukrainian forces struck Russia's Moscow oil refinery, severely damaging the AVT-6 primary refining unit and other facilities. Moscow Mayor Sobyanin said this was the "largest attack" the Russian capital had ever suffered. In response, Russia launched a new round of airstrikes on multiple locations in Ukraine, killing 4 people.
The attack comes at a time when global diesel supply is extremely fragile. According to Bloomberg data, global diesel futures and refining margins both surged to record highs last week, with the U.S. heating oil crack spread soaring to $117 per barrel, the highest since 2009. U.S. retail diesel prices climbed further to $6.45 per gallon this Friday, a record high. Analysis from the International Energy Agency (IEA) noted that the two simultaneous wars in the Middle East and Russia are restricting exports from key oil-producing regions, causing extreme tightness in the diesel market. Faced with surging domestic oil prices, debate within the U.S. over restricting diesel exports is intensifying, with Representative Tim Burchett having introduced related legislation, though analysts warn this move could further disrupt the global energy supply chain.
Ukrainian attacks on Moscow oil refineries escalate the Russia-Ukraine conflict, driving global diesel futures and U.S. retail diesel prices to all-time highs.
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