Oil prices fell in early Asian trade on Monday after last week’s gains, following the resumption of loadings at the key Russian export hub of Novorossiysk. The Black Sea port had suspended operations for two days after a Ukrainian attack.
Brent crude futures dropped 58 cents, or 0.9%, to $63.81 per barrel. U.S. West Texas Intermediate (WTI) crude fell 59 cents, or 1.0%, to $59.50 per barrel. Both benchmarks had risen more than 2% on Friday due to the temporary suspension, which affected about 2% of global supply.
Industry sources confirmed that Novorossiysk resumed oil loadings on Sunday. Analysts noted, however, that Ukraine’s continued attacks on Russian oil infrastructure could cause further disruptions. Ukrainian forces reported strikes on Russia’s Ryazan oil refinery and Novokuibyshevsk refinery in the Samara region.
Toshitaka Tazawa, an analyst at Fujitomi Securities, said, “Investors are trying to gauge how Ukraine’s attacks will affect Russia’s crude exports in the long term, while also locking in profits after last Friday’s rally.” He added that the perception of oversupply from OPEC+ production increases continues to pressure oil prices, keeping WTI near $60.
Investors are also watching the impact of Western sanctions on Russian supply and trade flows. The U.S. has banned deals with Russian oil companies Lukoil and Rosneft after November 21. Additional legislation could target any country trading with Russia, according to U.S. President Donald Trump.
Earlier this month, OPEC+ agreed to raise December output by 137,000 barrels per day, continuing the same increase as in October and November. A pause in output increases is planned for the first quarter of next year.
The resumption of shipments at the Russian export hub of Novorossiysk eased immediate supply concerns. However, investors remain cautious amid potential disruptions from attacks, sanctions, and global market factors.
Meanwhile, U.S. oil rigs increased by three to 417 in the week ending November 14, according to Baker Hughes, highlighting ongoing production activity in the United States.
The situation at the Russian export hub will continue to influence global oil markets in the near term, analysts said.
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