Brent crude futures were down 46 cents, or 0.72%, at $63.74 a barrel. United States (US) West Texas Intermediate (WTI) crude futures were down 45 cents, or 0.75%, at $59.46 a barrel.
Russia’s Novorossiysk port resumed oil loadings on Sunday following a two-day suspension triggered by a Ukrainian missile and drone attack, according to two industry sources and LSEG-compiled data. Crude oil is trading marginally lower “as reports indicate that loadings have resumed sooner than expected at Novorossiysk,” IG Analyst, Tony Sycamore wrote in a note. Exports from Novorossiysk and a nearby Caspian Pipeline Consortium terminal, together representing about 2.2 million barrels per day, or roughly 2% of global supply, were halted on Friday, pushing crude up more than 2% that day.
Traders are now refocusing on the longer-term impact of Western sanctions on Russian oil flows. Advertisement. The US Treasury said sanctions imposed in October on Rosneft and Lukoil are already squeezing Moscow’s oil revenues and are expected to curb Russian export volumes over time. ANZ Research said in a note that Moscow’s crude has begun trading at a significant discount to global benchmarks.
“Market worries centre around the build-up of oil on tankers as buyers assess the risk of potentially breaching sanctions,” said Vivek Dhar, Mining and Energy Commodities Strategist at Commonwealth Bank of Australia, but added that history has shown Russia’s ability to adapt to sanctions.
–Reuters–
