Global oil prices climbed more than 2% on Friday after a Ukrainian drone attack damaged an oil storage site at the Russian port of Novorossiysk, one of Moscow’s major Black Sea export hubs.
As of 02:27 GMT:
- Brent crude rose $1.34 (+2.13%) to $64.35 per barrel.
- West Texas Intermediate (WTI) gained $1.40 (+2.39%) to $60.09 per barrel.
Authorities in the Krasnodar region reported via Telegram that drone fragments hit residential buildings, an oil depot, and several coastal facilities inside the Novorossiysk transshipment complex.
📈 Why Prices Are Rising
Friday’s jump followed a brief stabilization on Thursday. Traders remained cautious as concerns grew over upcoming U.S. sanctions targeting Russia’s energy sector — a factor that offset pressure from fears of rising global supply.
The U.S. recently imposed sanctions on Lukoil and Rosneft, two of Russia’s largest oil companies, as part of efforts to push Moscow toward dialogue over the Ukraine crisis. The sanctions take full effect after November 21, with a ban on most dealings involving the two companies.
⛽ Impact of Sanctions on Russian Oil Flows
According to JPMorgan Chase, about 1.4 million barrels per day of Russian oil — roughly one-third of its seaborne exports — is currently stranded on tankers. Sanctions have made it difficult for buyers and ports to unload shipments, tightening the global supply outlook.
🛢 U.S. Oil Inventory Snapshot
Fresh data from the U.S. Energy Information Administration (EIA) showed:
- Crude inventories up 6.4 million barrels, far exceeding expectations of a 1.96 million-barrel increase, bringing total stocks to 427.6 million barrels.
- Gasoline and distillate inventories fell, though by smaller margins than analysts anticipated.
