Oil prices jumped by about 2% on Friday amid supply concerns following a drone attack on an oil depot in the Russian Black Sea port of Novorossiysk, a major export hub, writes UNN with reference to Reuters.
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By 03:15 GMT (05:15 Kyiv time), Brent crude futures rose by $1.24, or 1.97%, to $64.25 per barrel, while US West Texas Intermediate crude rose by $1.25, or 2.13%, to $59.94.
The attack on Friday morning damaged a vessel in the port, residential buildings, and an oil depot in the Russian Black Sea port of Novorossiysk, injuring three crew members of the vessel, Russian officials said.
Novorossiysk attacked by drones, oil terminal damaged14.11.25, 02:25 • 8758 views
“Ukrainian drone attacks on the port of Novorossiysk have raised new concerns about oil supply disruptions, as this port is Russia’s second-largest oil export hub and followed another major attack on Tuapse that occurred just two weeks ago,” said June Guo, senior oil market analyst at Sparta Commodities.
Russia’s Tuapse port suspends fuel exports after drone attacks, refinery halted – Reuters05.11.25, 12:59 • 18935 views
“The extent of the damage is not yet known, but if the situation continues to develop in the same vein, then the supply of oil and petroleum products from Russia will decrease,” the expert said.
The price increase came after Brent and WTI oil prices fell by about 3% on Wednesday following the publication of an OPEC report stating that global oil supply will meet demand in 2026, which is another deviation from previous forecasts of a supply deficit.
This week, the price of Brent oil increased by 0.94%, and WTI oil by 0.28%.
The US Energy Information Administration (EIA) on Thursday reported a larger-than-expected increase in US crude oil inventories last week, while gasoline and distillate inventories declined less than expected.
Investors are also monitoring the impact of Western sanctions on Russian oil supplies and trade flows.
The US imposed sanctions against Russian oil companies “Lukoil” and “Rosneft” as part of efforts to engage the Kremlin in peace talks regarding Russia’s war against Ukraine. The sanctions prohibit transactions with Russian companies after November 21.
About 1.4 million barrels of Russian oil per day, almost a third of the country’s potential seaborne exports, have been added to inventories on tankers as offloading slows due to US sanctions against “Rosneft” and “Lukoil,” JPMorgan said on Thursday.
Billions of barrels of oil are accumulating on tankers in the oceans, indicating tensions due to sanctions – Bloomberg12.11.25, 13:00 • 5408 views
The bank also stated that after November 21, when the deadline for receiving oil from sanctioned companies expires, cargo unloading may become significantly more difficult.
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