Drones Drive Record Gasoil Refining Margins Amid Western Counter-Drone Push

The recent surge in European gasoil refining margins has reached a record high of $94 over Brent, surpassing the peak of $71 seen during the 2022 energy crisis. This significant increase is attributed to Ukrainian drone strikes on Russian refineries, which have severely impacted processing capacity.

The cost of rebuilding refinery equipment takes longer than rerouting crude oil supplies, contributing to the prolonged high prices. In contrast, drones can be assembled for a few thousand dollars, while missiles used to shoot them down cost millions.

As a result, Western defense procurement is shifting towards developing counter-drone technology, with the U.S. Army awarding AeroVironment $464.8 million to produce high-energy laser systems that can engage drones at under five dollars per shot.