Oil prices retreated on Monday, reversing the gains made late last week, after Russia resumed crude loadings at the Novorossiysk export hub. The Black Sea port, a crucial route for Russian shipments, had halted operations for two days following a Ukrainian strike that damaged nearby infrastructure.
By 07:51 GMT, Brent crude futures were down 44 cents, or 0.68%, at $63.95 per barrel, while U.S. West Texas Intermediate (WTI) fell 0.8% to $59.61 per barrel. The pullback follows a more than 2% jump on Friday when the suspension of exports from Novorossiysk and a linked Caspian Pipeline Consortium (CPC) terminal temporarily removed an estimated 2% of global oil supply from the market.
According to industry sources and LSEG shipping data, oil loadings at Novorossiysk resumed on Sunday. Despite this recovery, traders remain wary as Ukraine intensifies strikes on Russian energy assets. Over the weekend, Kyiv reported successful attacks on the Ryazan refinery and the Novokuibyshevsk refinery in Russia’s Samara region—facilities that contribute significantly to domestic fuel production.
“Markets are reassessing the long-term implications of repeated attacks on Russia’s oil network,” said Toshitaka Tazawa of Fujitomi Securities. He added that perceptions of ongoing oversupply from OPEC+ output increases are also weighing on prices, keeping WTI near the $60 per barrel level within a narrow trading band.
Geopolitical pressures continue to compound market uncertainty. The U.S. recently expanded sanctions to prohibit transactions with Russian oil majors Lukoil and Rosneft beyond November 21, part of broader efforts to pressure Moscow over the conflict in Ukraine. President Donald Trump signaled on Sunday that Washington is considering legislation targeting any country that continues energy trade with Russia, hinting that Iran could face additional punitive measures as well.
Meanwhile, OPEC+ has confirmed a modest increase of 137,000 barrels per day for December production targets, mirroring the rises approved for October and November. The group also plans to pause incremental increases during the first quarter of next year as it assesses market balances.
A report from ING forecasts that the global oil market may remain oversupplied through 2026, though the bank warns that geopolitical risks—including Ukrainian drone strikes on Russian energy facilities and Iran’s recent seizure of a tanker in the Gulf of Oman—could trigger unexpected supply disruptions. The Gulf of Oman and the Strait of Hormuz collectively handle nearly 20 million barrels per day of global oil flows.
Latest trading data shows speculators increased their net long positions in ICE Brent by 12,636 lots, bringing the total to 164,867 lots—an indication that traders are reducing short positions amid rising geopolitical risks.
In the U.S., oilfield activity picked up slightly, with Baker Hughes reporting an increase of three active oil rigs last week, bringing the total to 417 as of November 14.
Source:Africa Publicity
