Oil prices slipped on Monday, surrendering part of last week’s sharp rally after crude shipments resumed at Russia’s Novorossiysk port, reducing immediate worries about supply disruption.
As of 04:35 ET (09:35 GMT), January Brent futures were down 0.7% at $63.97 a barrel, while West Texas Intermediate crude dipped 0.7% to $59.52 a barrel.
Exports resume at key Russian hub
Both Brent and WTI jumped more than 2% on Friday following Ukraine’s high-profile strikes on Novorossiysk and a nearby Caspian Pipeline Consortium facility—an attack that caused damage and temporarily halted shipments equal to around 2% of global supply.
By Sunday, however, media outlets reported that tanker-tracking data indicated crude loadings had restarted at the port.
Although the resumption has eased the near-term supply squeeze, traders remain on edge. Ukraine’s military said it struck Russia’s Ryazan refinery on Saturday and the Novokuibyshevsk facility in the Samara region on Sunday, adding to concerns that further disruptions could unfold.
Market weighs evolving supply risks
Attention is also locked on tightening U.S. sanctions. New restrictions from Washington will bar companies from engaging with Russian oil majors Lukoil and Rosneft after Nov. 21, compelling buyers to unwind existing deals and raising uncertainty over how much crude may ultimately be left without a market.
“While the oil market is expected to remain in a large surplus through 2026, it is also facing growing supply risks. The scale and intensity of Ukrainian drone attacks on Russian energy infrastructure are picking up,” ING analysts said in a note.
“Risks are also emerging elsewhere, with Iran seizing an oil tanker in the Gulf of Oman after it passed through the Strait of Hormuz. The Strait is a key choke point for the global oil market, with around 20m b/d passing through it,” they added.
Speculators lift Brent net longs
Fresh positioning data showed speculative net long holdings in ICE Brent rose by 12,636 lots in the latest reporting week, reaching 164,867 lots as of last Tuesday.
“This was predominantly driven by short covering. It suggests that some participants are reluctant to be short at the moment amid supply risks related to uncertainty over sanctions,” ING added.
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