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—
Price
crude oil
fell at the start of trading Monday (17/11), after shipping activity from the main export port
Russia
, Novorossiysk, opened.
Shipping from the port was halted for two days due to Ukrainian drone attacks.
Quote
Reuters
, the price of Brent crude oil reduced 58 cents or 0.9 percent to US$63.81 per barrel.Meanwhile West Texas Intermediate (WTI) weakened 59 cents or 1 percent to US$59.50 per barrel.
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Both benchmarks previously rose more than 2 percent on Friday (14/11), thus closing last week with slight increases, following the suspension of exports at Novorossiysk and the Caspian Pipeline Consortium terminal which disrupted around 2 percent of global supply.
According to two industry sources and LSEG data, oil shipping activities in Novorossiysk started again on Sunday (16/11).However, Ukraine’s escalation of attacks on Russia’s energy infrastructure keeps markets on alert for potential further disruption.
Ukraine’s military said it had attacked the Ryazan oil refinery on Saturday, as well as the Novokuibyshevsk facility in the Samara region on Sunday.
“Investors are trying to assess how the Ukraine attack will affect Russian crude oil exports in the long term, while taking profits after Friday’s rally,” said Fujitomi Securities analyst Toshitaka Tazawa.
He said that the perception of excess supply due to increased OPEC+ production was still putting pressure on prices, and WTI was estimated to remain at around US$60 per barrel with fluctuations of around US$5.
Markets are also watching the impact of Western sanctions on Russian supplies and trade flows.
The United States (US) has banned transactions with Russian oil companies, Lukoil and Rosneft, after November 21 in an effort to pressure Moscow to negotiate regarding the Ukraine war.
US President Donald Trump said Republicans were preparing legislation that would impose sanctions on any country that still does business with Russia, and Iran could even be added to the list.
Previously, OPEC+ agreed to increase its production target for December by 137 thousand barrels per day, the same as the increase in October and November, and decided to pause the increase in the first quarter of next year.
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