Oil prices dip on Tuesday

Oil prices dipped on Tuesday after supply concerns faded following the resumption of loadings at Russia’s Novorossiysk export hub, which had been halted for two days by a Ukrainian missile and drone strike. Brent crude slipped 46 cents to $63.74 a barrel, while US West Texas Intermediate (WTI) declined 45 cents to $59.46.

Loadings at Novorossiysk and a nearby Caspian Pipeline Consortium terminal—together handling around 2.2 million barrels per day (bpd), or 2 per cent of global supply—resumed sooner than expected, tempering the previous rally. Traders are now turning their focus to the longer-term impact of Western sanctions on Russian flows, as US measures on Rosneft and Lukoil continue to pressure Moscow’s oil revenues.

Analysts noted growing discounts on Russian crude and warned that sanctions are prompting buyers to reassess tanker risks, though Russia has historically found ways to adapt. Meanwhile, Goldman Sachs forecast that oil prices will trend lower through 2026 on the back of a major supply wave, though Brent could climb above $70 in 2026/2027 if Russian output drops more sharply.

Attribution: Reuters