Russian Exports Recover, Here's What Happened to Oil
Oil prices fell again in the Asian session after the key Russian port, Novorossiysk, resumed crude oil loading. This recovery immediately eased market concerns about supply disruptions, wiping out the significant gains recorded in the previous session. Brent for January delivery fell 0.9% to $63.80 per barrel, while WTI weakened 1% to $59.47 per barrel.
Oil prices had previously surged more than 2% after Ukraine launched a major attack on Russian energy facilities, including the Caspian Pipeline Consortium (CPC) terminal. The attack temporarily halted exports, representing approximately 2% of global supply, prompting the market to react sharply with price increases. However, ship tracking data showed that tankers were resuming oil loading on Sunday.
Although short-term concerns have eased, the market remains cautious. Ukraine claimed to have attacked two other Russian oil refineries over the weekend, potentially creating long-term disruptions to Moscow's energy infrastructure. This volatile situation has caused market participants to be cautious in interpreting the direction of future price movements.
Furthermore, market participants are also assessing new risks from tightened US sanctions. Starting November 21, companies are prohibited from transacting with Lukoil and Rosneft, forcing buyers to terminate contracts. This could leave some Russian oil "buried" without buyers. Analysts warn that although the oil market is projected to remain in surplus until 2026, escalating Ukrainian drone attacks and tensions in the Hormuz region—including the tanker seizure incident by Iran—could create greater supply risks. (asd)
Source: Newsmaker.id
