Ukraine Aid May Stop Russian Refinery Attacks: RBC

Approved US aid for Ukraine may help to stop its attacks on Russian energy infrastructure according to RBC’s Head of Commodity Research Helima Croft.

• “The position of the Ukrainians was, if don’t get money, if we don’t get weapons from the west, we’re going to bomb the Russian war ATM” Croft said.
• “With this aid going to Ukraine now, will Ukraine essentially say to the White House, we will cease our attacks on Russian energy?” Croft added.
• “In the case of Russia, we have essentially allowed Russian oil to stay on the market, that’s what the price cap was designed to do. To enable Russian oil barrels to flow to Asia,” Croft said.
• “Same thing with Iran, Iranian oil exports are now at a 5-year high”, on the weekend increase in sanctions, Croft said “with congress now saying to the White House, we want to see a significant reduction in Iranian crude exports because of what this money is funding…will the White House go along with this?” Croft added.
• “I think for now, Iran and Israel have signaled they do not want a direct war at this stage,” Croft said.
• “For now, oil markets are going to focus on fundamentals, that means we still have support for oil around this level,” Croft said.