Oil price rises after Ukraine attacks major Russian refinery

The price of oil has climbed following a Ukrainian drone strike on Russia’s third-largest refinery.

The attack on the Taneco facility, in the province of Tatarstan, appears to have been Kyiv’s deepest strike inside Russian territory since the invasion of Ukraine more than two years ago.

The strike on Tuesday started a fire which took around 20 minutes to extinguish. No major damage to the site or injuries were reported.

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However, it was enough to trigger concern from investors, helping to push the cost of Brent crude above $89 (£71) a barrel on Wednesday morning – its highest level in six months.

The refinery, which is almost 800 miles east of Ukraine, has the capacity to produce around 340,000 barrels of oil per day.

A Ukrainian intelligence source claimed responsibility for the attack.

The strike also came just a day after the suspected Israeli bombing of Iran’s consulate in Syria, heightening concerns of a possible escalation of the conflict in the Middle East and further disruption to energy supplies.

Iran is the third-largest producer in the Organisation of the Petroleum Exporting Countries (OPEC).

The Ukrainian strike was the latest in a string of attacks on oil refineries in Russia, which is the world’s second-largest oil exporter.

Around 14% of Russia’s refining capacity has been shut down by drone attacks, according to news agency Reuters.

Kremlin spokesman Dmitry Peskov described Tuesday’s attack as “terrorist activity”.

He told reporters: “We and our military are primarily working to minimise this threat, and subsequently to eliminate it.”

Any sustained rise in the cost of oil risks having a knock-on effect on petrol prices in the UK.

However, it remains below highs of more than $90 (£72) a barrel that were reached in autumn last year.