Ukraine Threatens Russian Refineries as Brent Crude Reclaims $106

A senior Ukrainian official said Ukraine would continue targeting Russian refineries, adding pressure to fuel markets as Brent crude returned above $106 a barrel on Monday, Oct. 12.

Brent rose 2% to an intraday high of $106.80. U.S. diesel averaged $6.26 a gallon, nearly 80% above its level at the start of the year.

The warning came after President Donald Trump announced Oct. 9 that Russia would supply more than 300,000 metric tons of diesel immediately, followed by 500,000 tons in November and 1 million tons afterward. The arrangement could include an additional 3 million tons depending on refinery conditions.

The U.S. Treasury’s Office of Foreign Assets Control issued General License 135 on Oct. 9, authorizing transactions tied to Russian diesel sales, delivery, unloading and imports through April 7, 2027.

Russia’s refineries are operating at roughly 60% of capacity, while seaborne diesel exports have nearly stopped. Ukraine’s warning followed a breakdown in expectations around an energy ceasefire. On Monday, Ukrainian President Volodymyr Zelenskyy said Russian forces had continued attacking Ukrainian energy infrastructure and warned Ukraine would respond if Russia did not accept an energy truce this winter.