Oil eased as Novorossiysk loadings resumed but geopolitical risks limited losses

Oil prices edged lower on Monday as Russia resumed crude loadings at the Novorossiysk export hub, partially reversing last week’s supply-driven rally, though escalating geopolitical risks kept downside momentum contained.

Brent crude fell 0.3% to settle at $64.20 a barrel.

WTI slipped 0.3% to $59.91 a barrel.

Operations at Novorossiysk restarted on Sunday after a two-day suspension triggered by a Ukrainian attack that temporarily removed around 2% of global supply. The restoration of flows eased immediate tightness, but recent strikes on multiple Russian energy facilities kept traders cautious over potential longer-term disruptions.

The broader risk environment remained elevated after Iran seized a tanker near the Strait of Hormuz — a chokepoint for roughly a fifth of global oil shipments — while conflict-related outages in Sudan continued to constrain exports from the region.

Market attention is also centered on the 21 November deadline, when US sanctions targeting major Russian producers are set to take full effect. The restrictions have already pushed more Russian crude into floating storage and widened discounts on its seaborne barrels, reinforcing expectations of tighter marketable supply in the weeks ahead.

At the same time, rising output from OPEC+ members and producers outside the alliance continued to cap gains, with analysts expecting a sizeable surplus to emerge over the coming months despite ongoing supply-side risks.

Refining margins, meanwhile, remain supported by outages across Russia, Asia, Africa and parts of Europe, underpinning demand for crude even as macro conditions remain uneven.

Written by: Aiman Haikal