Brent crude prices were initially lower, and are now flat, after operations resumed at Russia's key Black Sea export hub, Novorossiysk. This follows last Friday's Ukrainian drone strike on the export hub, which had sent prices soaring.
Brent slid to $63 per barrel in Asia and Europe after Reuters and Bloomberg reported that crude-loading operations had resumed at Novorossiysk.
Bloomberg noted that two tankers were moored at the export hub on Sunday, while Reuters reported that loading had restarted.
Much of the overnight losses were cut by the time US traders woke up, as Brent prices inched above $64. Last Friday, the drone attack sent crude oil up more than 2%.
Here's the chart:
"People were expecting a longer outage" at Novorossiysk following the strike, said Mukesh Sahdev, the founder and chief executive officer of Xanalysts Pty. Indications of a resumption are a "bearish signal," he added. Sahdev was quoted by Bloomberg.
Ukrainian forces have increasingly targeted Russian oil export chokepoints, including oil-refining, storage, and export infrastructure, using drones and missiles. Novorossiysk was targeted for several key reasons:
Russia's Largest Black Sea Oil Export Terminal: Novorossiysk handles a major share of Russia's seaborne crude exports, including Urals and CPC Blend. When it goes offline, millions of barrels per day are at risk.
Key Outlet for Sanctions-Crimped Russian Supply: With many European ports closed to Russian oil, Black Sea routes have become even more vital. Novorossiysk is one of Moscow's few remaining large, reliable export points.
Gateway to Europe, the Mediterranean, and Global Markets: Tankers from Novorossiysk move oil toward Europe, Turkey, India, and increasingly China. Any disruption affects multiple downstream markets.
Linked to CPC Pipeline Exports: The Caspian Pipeline Consortium (CPC) routes Kazakh and Russian crude to Novorossiysk.
The broader oil market outlook heading into 2026 remains bearish (read report).
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