Oil prices rose on Friday amid renewed concerns over global supply after a Ukrainian drone strike hit an oil depot in the Russian Black Sea port of Novorossiysk, one of the country’s most important export hubs.
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Brent crude futures gained $1.24, or 1.97%, to $64.25 a barrel by 0315 GMT, while U.S. West Texas Intermediate (WTI) rose $1.25, or 2.13%, to $59.94.
The early-morning attack damaged a vessel, several residential buildings, and an oil storage facility, injuring three crew members, according to Russian officials.
“Ukrainian drone attacks on the port of Novorossiysk have sparked new fears of oil supply disruptions,” said June Goh, senior oil market analyst at Sparta Commodities. “If escalation continues, both crude and product exports from Russia could face significant curtailment.”
The rise in prices followed a nearly 3% drop on Wednesday after an OPEC report projected that global oil supply and demand will be balanced by 2026, shifting away from earlier expectations of a supply deficit. For the week, Brent is up 0.94% and WTI 0.28%.
Meanwhile, U.S. crude inventories rose sharply. The Energy Information Administration reported a 6.4-million-barrel increase last week, far exceeding Reuters’ forecast of 1.96 million barrels. Gasoline and distillate stocks also rose, but less than analysts expected.
Markets are also watching the impact of escalating Western sanctions on Russian energy flows. The United States has imposed new restrictions on Russian oil giants Lukoil and Rosneft, with all transactions prohibited after November 21.
JPMorgan said on Thursday that around 1.4 million barrels per day of Russian oil—nearly a third of the country’s seaborne export capacity—has been diverted into floating storage as shipments slow under the sanctions. The bank warned that unloading cargoes could become even more difficult after the cut-off date.
