Oil prices surge after Ukrainian attack on major Russian port

Oil prices person reportedly jumped by astir 2% aft a Ukrainian onslaught connected Russia’s Novorossiysk larboard disrupted lipid shipments, triggering proviso concerns.

The terms of Brent crude accrued by $1.50 (2.4%) to $64.51 per tube (bbl) and US West Texas Intermediate climbed $1.57 (2.7%) to $60.26/bbl, according to Reuters.

Reuters noted that manufacture sources reported that Novorossiysk handled 3.22 cardinal tonnes (mt) of crude lipid (761,000 barrels per day) successful October, arsenic good arsenic 1.79mt of lipid products.

Earlier successful the week, some Brent and WTI benchmarks dipped aft a study by the Organisation of the Petroleum Exporting Countries projected a equilibrium betwixt worldwide lipid proviso and request by 2026, moving distant from earlier expectations of a proviso shortage.

Meanwhile, information from the US Energy Information Administration indicated that crude inventories roseate by 6.4 cardinal barrels (mbbl) to 427.6mbbl for the week ending 7 November.

Reuters added that ongoing sanctions against Russia person added further complexity to planetary lipid flows.

The US has announced a prohibition connected transactions with Russian lipid companies Lukoil and Rosneft, effectual aft 21 November, “as portion of efforts to bring the Kremlin to bid talks implicit Ukraine”.

JPMorgan estimates that astir 1.4 cardinal barrels per time of Russian lipid – astir 1 3rd of the country’s seaborne export capableness – is presently being stored connected tankers arsenic sanctions hold unloading operations.

US backstage equity institution Carlyle is reportedly exploring options for the acquisition of Lukoil’s overseas assets.

Lukoil’s planned merchantability of assets to Gunvor, based successful Switzerland, was halted anterior to the 21 November sanctions deadline.

Lukoil, which accounts for astir 2% of planetary lipid production, some domestically and internationally, has announced plans to merchantability its overseas assets.

These planetary holdings correspond astir 0.5% of worldwide lipid output and are valued astatine astir $22bn, according to 2024 filings, said Reuters.

"Oil prices surge aft Ukrainian onslaught connected large Russian port" was primitively created and published by Offshore Technology, a GlobalData owned brand.

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