Global Oil Weakens: What's Happening at This Russian Port?
Oil prices weakened at the start of the week after signs emerged that activity at Russia's main port, Novorossiysk, was resuming operations. The port had previously halted operations due to attacks in Ukraine last week. Brent fell below $64 per barrel, while WTI sank to near $59, after reports indicated that two tankers had returned to port and oil loading had begun. Analysts believe the market had anticipated a longer disruption, making the news of the resumption of operations a bearish signal for oil prices.
Oil prices had previously risen more than 2% due to rising geopolitical risks, including attacks on Russian energy infrastructure and the seizure of tankers by Iran near the Strait of Hormuz. However, while tensions remain high, the overall market remains clouded by a supply surplus. Rising production from OPEC+ countries and producers outside the group has also curbed the potential for significant price increases.
Meanwhile, global refining margins have surged due to repeated attacks on Russian energy infrastructure, disruptions at facilities in Asia and Africa, and the permanent shutdown of several refineries in Europe and the US. This situation has tightened the supply of petroleum derivatives such as diesel and gasoline, but not enough to push crude oil prices higher.
Meanwhile, President Donald Trump expressed support for a Senate bill that would impose sanctions on countries that continue to do business with Russia. This move represents increased US pressure on Moscow amid the ongoing war. At 10:19 a.m. Singapore time, Brent for January delivery fell 0.9% to $63.82, while WTI for December delivery fell 1% to $59.48 per barrel. (asd)
Source: Bloomberg.com
