Oil drops as Russia resumes exports from Novorossiysk port

Oil prices fell in early Asian trading on Monday, reversing last week’s gains after Russia resumed loadings at the Novorossiysk export hub. The Black Sea port had halted operations for two days following a Ukrainian attack.

Brent crude futures were down 58 cents, or 0.9%, at $63.81 a barrel as of 0050 GMT, while US West Texas Intermediate fell 59 cents, or 1.0%, to $59.50. Both benchmarks had climbed more than 2% on Friday after export suspensions at Novorossiysk and a nearby Caspian Pipeline Consortium terminal briefly disrupted about 2% of global supplies.

Oil loadings resumed on Sunday, according to industry sources and LSEG data, though markets remain alert to further disruptions from Ukraine’s intensified strikes on Russian energy facilities. Kyiv said it hit the Ryazan refinery on Saturday and later targeted the Novokuibyshevsk refinery in Samara.

Analyst Toshitaka Tazawa of Fujitomi Securities said investors are weighing the long-term impact of Ukrainian attacks on Russian exports while taking profits after Friday’s rally. He added that concerns over oversupply persist due to OPEC+ production increases, with WTI expected to hover near $60 within a $5 trading band.

Traders are also assessing the effects of Western sanctions on Russian supply. The United States has banned dealings with Lukoil and Rosneft after November 21 to pressure Moscow over the war in Ukraine. President Donald Trump said Republicans are preparing legislation to sanction any country doing business with Russia, adding that Iran could also be included.

Earlier this month, OPEC+ approved a 137,000-barrel-per-day increase in December output targets, matching hikes in October and November, while agreeing to pause further increases in the first quarter of next year.

US drilling activity inched higher, with the number of active oil rigs rising by three to 417 in the week ending November 14, according to Baker Hughes.