Russia’s Novorossiysk port resumed oil loading on Sunday after being repaired following the Ukrainian attack. Oil prices fell on Monday, erasing last week’s gains, as the Black Sea port, damaged by the Ukrainian attack, resumed operations after a two-day shutdown.
Brent crude futures were down 53 cents, or 0.82%, to $63.86 a barrel at 04:23 GMT. WTI crude futures were trading at $59.53 a barrel, down 56 cents, or 0.93%, from Friday’s close.
Both indices rose more than 2% on Friday, closing the week with modest gains after exports were suspended at Novorossiysk and the neighboring Caspian Pipeline Consortium terminal. This represents a 2% loss of global supply.
According to two industry sources and LSEG data, the port of Novorossiysk resumed oil loading on Sunday. However, Ukraine’s escalating attacks on Russia’s oil infrastructure continue to pose a risk of further disruptions.
Investors are trying to understand how Ukraine’s attacks will impact Russia’s crude oil exports in the long term, as well as how it will manage to profit from last Friday’s surge.
The perception of a supply glut stemming from OPEC+ production increases persists, with WTI likely to remain around $60 a barrel and fluctuate in the $5 range.
The US imposed sanctions after November 21, prohibiting deals with two of Russia’s major oil companies, Lukoil and Rosneft, to pressure Moscow into peace talks on Ukraine.
Investors are also monitoring the impact of Western sanctions on Russia’s supply and trade flows.
Trump said on Sunday that Republicans are working on a bill that would impose sanctions on all countries doing business with Russia, and that Iran could be added to the list.
Earlier this month, OPEC+ agreed to increase its December production target by 137,000 barrels per day, the same as for October and November. It also agreed to pause increases in the first quarter of next year.
The market expects a large supply surplus through 2026. However, it is wary of increased supply risks, as Ukraine escalates drone attacks on Russian energy facilities and Iran seizes a tanker in the Strait of Hormuz, a key route for global oil flows of about 20 million barrels per day.
The number of oil rigs operating in the United States increased by three in the week to November 14, reaching 417, according to data released Friday by oil services company Baker Hughes.