Oil prices fell to $63.95 a barrel on Monday, November 17, amid the resumption of loading at a key export hub in Russia, UNN reports with reference to Reuters.
Details
At the beginning of the week, oil prices fell amid the resumption of loadings at the "key" Russian export hub in Novorossiysk.
Brent crude futures fell 44 cents, or 0.68%, to $63.95 a barrel by 07:51 GMT. West Texas Intermediate (WTI) crude futures traded at $59.61 a barrel, down 48 cents, or 0.8%, from Friday.
The port of Novorossiysk resumed oil loading on Sunday, according to two industry sources and LSEG data. However, intensified Ukrainian attacks on Russian oil infrastructure remain in focus given possible further disruptions.
The Ukrainian military announced on Saturday a strike on the Russian Ryazan oil refinery, and the General Staff of the Armed Forces of Ukraine announced on Sunday a strike on the Novokuibyshevsk oil refinery in Russia's Samara region.
Addition
Among other reasons currently affecting prices are:
- an oversupply of a mixture of hydrocarbons of various grades;
- increased OPEC+ production.
"Overall, the sense of oversupply due to increased OPEC+ production persists," said Toshitaka Tazawa, an analyst at Fujitomi Securities, adding that the price of WTI is likely to remain around $60 a barrel.
Investors are trying to assess how Ukraine's attacks will affect Russian crude oil exports in the long term, and are also taking profits after last Friday's rally.
Investors are also monitoring the impact of Western sanctions on Russian supplies and trade flows. The United States has imposed sanctions prohibiting transactions with Russian oil companies Lukoil and Rosneft after November 21 to push Russia towards peace talks on Ukraine.
Recall
Oil futures Brent rose 1.97% to $64.25 a barrel, and WTI rose 2.13% to $59.94. This happened after a drone attack on an oil depot in Novorossiysk, which raised concerns about supplies.
Oil prices fall amid rising US inventories and OPEC forecast change13.11.25, 09:15