Ukraine said it hit a small oil refinery in southern Russia, the third attack this month on its foe’s fuel-producing industry.  Explosions were recorded at the territory of the Slavyansk facility after Ukrainian drones struck it overnight and hit “elements of a primary crude processing unit”, the General Staff in Kyiv said in a Telegram statement. The scale of damage of the facility, which is involved in supplying Russian military forces, is being clarified, it added. Bloomberg couldn’t independently verify the claim. Slavyansk ECO, the operator of the refinery, didn’t immediately respond to a request for comment.  The refinery is in the Krasnodar region, near Ukraine. Kyiv and Moscow continue to trade strikes on energy infrastructure even as Ukrainian, Russian and US delegations held talks last week aiming at ending the Kremlin’s war on its neighbor that’s about to enter a fifth year.   Ukraine has reduced the intensity of attacks on Russian refineries so far this year with the three targeted in January comparing with 11 of them in December. Kyiv has also gone after ports and tankers handling Moscow’s oil. At the same time Russia has intensified strikes on Ukraine’s power sector, leaving hundreds of thousands of people without heating, water and electricity amid freezing temperatures.  Ukraine’s capital, Kyiv, and other cities are rushing to restore power after huge Russian air-strikes over the weekend caused widespread outages, even as peace talks were underway in the United Arab Emirates. The Slavyansk refinery processed an average 467,000 tons of crude a month in the first half of 2025, according to its financial report. That equates to almost 115,000 barrels a day based on the 7.33 barrels-per-ton conversion rate.  WHAT DO YOU THINK? Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial

Oil edged down as an improving supply outlook out of OPEC+ member Kazakhstan overshadowed fears that a winter storm which pounded swaths of the US with snow, ice and freezing temperatures will crimp production. West Texas Intermediate fell slightly to settle below $61 a barrel, after climbing 2.9% on Friday, the biggest gain in two weeks. Disruptions to Kazakh oil flows that had tightened the European crude market eased as a key Black Sea terminal that accounts for most of Kazakhstan’s exports was brought back into service. At the same time, output from the country’s giant Tengiz field is set to restart shortly. The fresh injection of supply mitigated fears of shortages as investors assess the fallout from a winter storm that gripped much of the US. Several plants, including ExxonMobil Corp.’s Baytown mega refinery, curtailed operations ahead of the freeze, while diesel rallied by the most since November on higher demand for heating. The full extent of cold-related supply shut-ins remains unclear. Meanwhile, tensions persist in the Middle East after US President Donald Trump dispatched naval assets to the region, prompting speculation he may follow through on threats to attack Iran’s regime and spurring concern over the country’s oil output. Geopolitical turmoil and short-term supply disruptions have supported crude prices amid widespread expectations that swelling output from the Americas will create a glut. Hedge funds raised their bullish bets on crude to the highest since August in the week through Jan. 20. “The constant stir in geopolitics is keeping risk premiums alive,” said Priyanka Sachdeva, a senior market analyst at brokerage Phillip Nova Pte in Singapore. “However, the broader market remains cautious with production growth from the US and other major exporters outpacing demand growth.” OPEC+ delegates, meanwhile, said they are currently expecting to stick with plans to keep

Global oil demand growth is projected to average 930,000 b/d in 2026, up from 850,000 b/d in 2025, the International Energy Agency (IEA) said in its January 2026 Oil Market Montly Report, reflecting a normalization of economic conditions after last year’s tariff disruptions and oil prices trending lower than a year ago.  This contrasts with the agency’s earlier projections of 830,000 b/d for 2025 and 860,000 b/d for 2026. The recovery in petrochemical feedstock demand will be partially offset by a continued slowdown in gasoline demand growth. All of the growth in 2026 will again come from non-OECD countries, IEA said in the report.  Global oil supply fell by 350,000 b/d month-on-month in December to 107.4 million b/d, 1.6 million b/d below the record high reached in September. Production declines in Kazakhstan and some Middle Eastern OPEC producers were partially offset by a strong rebound in Russian output. Global oil supply is now projected to grow by 2.5 million b/d this year to 108.7 million b/d, following a 3 million b/d increase in 2025. Non-OPEC+ countries contributed 1.8 million b/d of the growth in 2025 and 1.3 million b/d of the growth in 2026. “The current global surplus has been underpinned by a robust growth in oil supply since the start of 2025, with non-OPEC+ producers accounting for close to 60% of the 3 million b/d total increase. Saudi Arabia has led the rise in OPEC+ supply following the unwinding of production cuts, while the Americas quintet of the US, Canada, Brazil, Guyana, and Argentina has dominated non-OPEC+ increases. Barring any significant sustained disruptions to output – and if OPEC+ stays the course with its current production policy and activity in the US shale patch avoids major downshifts – global oil supplies could increase by a further 2.5 million b/d

Continental Resources has suspended new drilling activity in North Dakota’s Bakken shale, citing inadequate economics under current oil price conditions. The decision was disclosed by founder and controlling shareholder Harold Hamm during an investor call hosted by Bloomberg, where Hamm said prevailing prices no longer support incremental drilling in the play. After more than 30 years of continuous activity in the Bakken, margins have compressed to levels below Continental’s return thresholds, Hamm said. Elevated service costs and weaker crude pricing have pushed breakeven requirements above current market levels, he continued.  The company characterized the move as a tactical pause rather than a permanent exit, indicating that drilling could resume if pricing improves.  The Bakken was central to the early expansion of horizontal drilling and hydraulic fracturing in the US. However, as the play matures, productivity gains have moderated and capital efficiency has come under pressure.  Argentina Meanwhile, Continental is advancing its first large-scale expansion outside the US, targeting Vaca Muerta in Argentina’s Neuquén basin. On Jan. 5, 2026, Continental finalized an agreement with Pan American Energy (PAE), acquiring a 20% non-operated interest in four shale blocks. PAE Group chief executive Marcos Bulgheroni said Continental’s participation adds technical expertise focused on efficiency and risk reduction. Continental chief executive officer Doug Lawler said the company views Vaca Muerta as one of the most competitive shale plays globally. That deal follows Continental’s acquisition of a 90% operated interest in Los Toldos II Oeste from Pluspetrol, establishing the company in Argentina as both an operator and a non-operating partner.

An arbitrator has ruled in favor of Venture Global Inc. in the liquefied natural gas company’s dispute with Repsol LNG Holding SA over its decision to delay the commercial operations date for its 10-million tonne/year Calcasieu Pass LNG plant. In a filing with the US Securities and Exchange Commission, executives of Virginia-based Venture Global said the International Chamber of Commerce’s arbitration body has found that the company acted as a “reasonable and prudent operator” and hadn’t breached the terms of its contract with Spain’s Repsol. The companies’ tussle centers on Venture Global’s decision earlier this decade to—citing problems with some Calcasieu Pass equipment as well as the plant’s power infrastructure—hold off on declaring COD but still export some cargoes during the commissioning phase at spot rates in early 2022. “The company is pleased that another arbitral tribunal has ruled in [Venture Global Calcasieu Pass LLC]’s favor in the proceeding with Repsol,” Venture Global’s SEC filing reads. “Multiple proceedings have now affirmed what the company has stated from the outset: VGCP has fully honored the clear and mutually agreed-upon terms of its long-term contracts without exception.” Repsol and other big energy names—Shell, bp and China Petroleum & Chemical Corp. among them—had claimed Venture Global was profiteering from high spot rates rather than meeting its contracts with them and took their cases to the International Chamber of Commerce, claiming damages that could have topped $7 billion. The ICC’s arbitrators also have sided with Venture Global in Shell’s case but last October ruled in favor of bp, whose executives’ claim of damages of at least $1 billion is expected to be adjudicated this year. Venture Global—whose leaders declared COD for Calcasieu Pass last April—nearly 4 months ago settled its dispute with China Petroleum & Chemical Corp. Shares of Venture Global (Ticker: VG) were

US crude oil inventories for the week ended Jan. 16, excluding the Strategic Petroleum Reserve, increased by 3.6 million bbl from the previous week, according to data from the US Energy Information Administration. The report was released a day later than usual due to the federal holiday Jan. 19. At 426.0 million bbl, US crude oil inventories are about 2% below the 5-year average for this time of year, the EIA report indicated. EIA said total motor gasoline inventories increased by 6.0 million bbl from last week and are about 5% above the 5-year average for this time of year. Finished gasoline inventories and blending components inventories both increased last week. Distillate fuel inventories increased by 3.3 million bbl last week and are about 1% below the 5-year average for this time of year. Propane-propylene inventories decreased by 2.1 million bbl from last week and are 39% above the 5-year average for this time of year, EIA said. US crude oil refinery inputs averaged 16.6 million b/d for the week ended Jan. 16, which was 354,000 b/d less than the previous week’s average. Refineries operated at 93.3% of capacity. Gasoline production decreased, averaging 8.8 million b/d. Distillate fuel production decreased by 210,000 b/d, averaging 5.1 million b/d. US crude oil imports averaged 6.4 million b/d, down by 645,000 b/d from the previous week. Over the last 4 weeks, crude oil imports averaged 6.2 million b/d, 5.3% less than the same 4-week period last year. Total motor gasoline imports averaged 412,000 b/d. Distillate fuel imports averaged 215,000 b/d.