Ukraine Hits Ilsky Oil Refinery in Russia as Energy Strikes Widen

Ukraine hit another Russian oil refinery overnight, with a fire breaking out at the Ilsky Oil Refinery in southern Russia’s Krasnodar region, Kyiv’s General Staff said on Saturday, September 26 (Reuters). The military described the facility as one that helps fuel Moscow’s war effort, and footage and local reports showed flames at the site after the reported strike.

The Ilsky strike landed just a day after Ukraine’s drone attack forced the Perm Oil Refinery — Russia’s seventh-largest, operated by Lukoil-Permnefteorgsintez — to suspend operations on September 25, after damage to pipelines, storage facilities and processing units, according to two industry sources. Together with Thursday’s hit on the Novoshakhtinsk refinery, Ukraine has now struck or disrupted three Russian refineries in three days — a clear intensification of the campaign against the energy infrastructure that funds and fuels Russia’s war machine.

Why it matters for markets: Brent crude has been trading near or above the $100-a-barrel mark this week amid the Iran war premium, and each refinery strike adds supply-side risk on top of that. Reduced Russian refining output tightens global diesel and gasoline balances, with Europe and Asia the most exposed. The strikes also keep energy traders pricing in the possibility of retaliation — Moscow has been hitting Ukrainian energy and port infrastructure in return, including overnight drone strikes on Odesa-area cargo vessels and defense facilities on September 25.

What to watch: whether Ilsky sustains damage severe enough to halt processing like Perm did; how Russian diesel export flows respond over the coming week; and whether the nightly refinery-strike pattern continues ahead of winter. OPEC+ meets on October 5 to decide November production levels, and Russian supply disruptions will hang over that decision.

Related reading: Ukraine Strikes Perm Oil Refinery 1500 KM Inside Russia (https://bullounge.com/forums/topic/ukraine-strikes-perm-oil-refinery-1500-km-inside-russia/) and Ukraine Drones Force Russian Novoshakhtinsk Refinery to Halt Operations (https://bullounge.com/forums/topic/ukraine-drones-force-russian-novoshakhtinsk-refinery-to-halt-operations/).

Will these sustained refinery strikes push gasoline prices higher heading into winter, or does OPEC+ have enough spare capacity to keep markets calm? Share your take in the comments.

Sources:
https://www.devdiscourse.com/article/international/3982819-ukraine-says-it-struck-ilsky-oil-refinery-in-southern-russia
https://www.saptashwatv.com/news/international-news/ukraine-strikes-russian-oil-refineries-with-long-range-drones-perm-facility-halts-operations-28739.html
https://www.reuters.com/business/aerospace-defense/russia-says-it-struck-ukrainian-defence-industry-facilities-vessels-2026-09-25/

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