Crude oil prices eased on Monday as loadings resumed at Russia’s Novorossiysk export hub after a two-day suspension at the Black Sea port due to a Ukrainian attack.
Brent crude moderated by 19 cents or 0.3 per cent to close at $64.20 a barrel, and the US West Texas Intermediate (WTI) crude eased by 18 cents or 0.3 per cent to $59.91 per barrel.
Crude loadings resumed at the key Russian export hub of Novorossiysk following a two-day suspension of operations at the Black Sea port.
Last week’s rally of more than 2 per cent for both benchmarks was underpinned by a disruption at Novorossiysk and a neighbouring terminal operated by the Caspian Pipeline Consortium. The resumption of loading operations at Novorossiysk was confirmed by industry sources and supported by data from LSEG, signalling that the immediate supply pressure had eased.
Ukrainian forces in recent months have stepped up their campaign of attacks against Russian oil infrastructure, with Ukraine striking the Ryazan refinery on Saturday.
Also, the market is grappling with a growing perception of oversupply, driven in large part by the output decisions of the Organisation of the Petroleum Exporting Countries and its allies (OPEC+).
Earlier this month, the alliance agreed to increase December output targets by 137,000 barrels per day, the same as for October and November. It also agreed to a pause in increases in the first quarter of next year.
Western sanctions targeting Russian oil firms such as Lukoil and Rosneft are set to deepen after 21 November, and U.S. officials are considering legislation to penalize any country doing business with Russia.
US President Donald Trump said on Sunday that Republican lawmakers are working on legislation that will impose sanctions on any country doing business with Russia, adding that Iran could be added to that list.
The oil market was expected to remain in a large surplus through 2026, analysts at ING said. It also warned of rising supply risks from Ukrainian drone attacks on Russian energy facilities and flagged Iran’s seizure of a tanker in the Gulf of Oman after it transited the Strait of Hormuz, an important route for about 20 million barrels per day of global oil flows.
On its part, Goldman Sachs said on Monday that oil prices are expected to decline through 2026, citing a production surge that will keep the market in a large surplus of around 2 million barrels per day.