Oil prices fall on Monday

Oil prices fell on Monday, wiping out last week’s gains, after Russia resumed crude loadings at the Novorossiysk export hub following a two-day suspension caused by a Ukrainian attack. Brent slipped 53 cents to $63.86 a barrel, while US West Texas Intermediate (WTI) fell 56 cents to $59.53 in early trading.

Novorossiysk restarted operations on Sunday, though markets remained alert to potential disruptions as Ukraine intensified strikes on Russian oil infrastructure, including the Ryazan and Novokuibyshevsk refineries. Analysts said investors were taking profits after Friday’s rally and continued to view the market as oversupplied following recent OPEC+ output increases.

Traders also monitored new US sanctions barring deals with Lukoil and Rosneft after November 21, alongside warnings of broader penalties on countries engaging with Russia.

ING said the oil market is expected to remain in a surplus through 2026 despite rising geopolitical risks, including attacks on Russian facilities and Iran’s seizure of a tanker in the Gulf of Oman. Meanwhile, US oil drillers added three rigs last week, bringing the total to 417.

Attribution: Reuters