Pentagon Chief Warns: Ukrainian Strikes on Refineries Spark Global Energy Concerns
7:13 AM EDT, April 10, 2024, updated: 8:56 AM EDT, April 10, 2024
On Tuesday, Lloyd Austin, the Pentagon Chief, stated during a Congress session that Ukrainian attacks on refineries could impact the global energy market situation. He suggested that Ukraine might be more effective by focusing on targets directly influencing the ongoing conflict.
Austin referenced the Ukrainian strikes on Russian refineries while speaking at a budget hearing in the Senate Armed Services Committee.
"Certainly, these attacks could have a domino effect on the global energy situation" the Defense Secretary remarked.
"I think Ukraine is better served in going after tactical and operational targets that can directly influence the current fight," he added.
Austin's remarks indirectly confirm reports by the Financial Times that the US administration is urging Ukraine to halt attacks on Russian oil infrastructure due to concerns over rising oil prices.
Furthermore, the Secretary of Defense reiterated the importance of additional support for Ukraine. He pointed out that Vladimir Putin is capitalizing on the current stalemate and weakening support for Kyiv. He emphasized that anything we can do to burst Putin's bubble limiting support for Kyiv will be greatly appreciated.
Austin also discussed the situation in Gaza, stating that Israel should significantly enhance the delivery of humanitarian aid to Palestinians to avert mass starvation. He mentioned that famine would "accelerate violence and ensure long-term conflict," further empowering terrorists. Additionally, he clarified that there is no evidence that Israel's actions in the Gaza Strip amount to genocide.
Rising oil prices: notable changes at the pump
According to Reuters, the Russian refineries' processing capacity knocked out in the first quarter of 2024 by drone attacks amounted to roughly 4.6 million tons of crude oil (about 370,500 barrels per day), corresponding to approximately 7% of the country's total processing capacity.
Crude oil prices surpassed $90 per barrel at the end of last week, with signs indicating the trend might continue.
