Russian Port Restart Triggers Oil Price Slide as Supply Glut Concerns Loom

Oil prices slipped in early Asian hours on Monday, reversing the gains achieved the week before. The decline followed the reopening of the Russian export hub at Novorossiysk on the Black Sea, which had halted operations for two days. With loadings now back online, Brent crude was trading 64 cents lower at $63.75 per barrel, while U.S. West Texas Intermediate fell by 66 cents from Friday’s close to $59.43. The shutdown at Novorossiysk and at an adjacent Caspian Pipeline Consortium facility had temporarily tightened supply and helped push both benchmarks more than 2% higher last week. Industry sources, supported by LSEG data, confirmed that shipments had resumed, easing immediate supply concerns.

Even with the restart, the broader backdrop remains complex. These Ukrainian strikes on Russian energy sites keep the market alert to the possibility of renewed interruptions. At the same time, expectations of abundant supply continue to build. This sentiment stems in part from OPEC+’s move earlier in November to raise production by 137,000 barrels per day, though the group indicated it may suspend further increases during the first quarter of the next year.

Additional pressure comes from the sanctions environment and developments in U.S. production. Western restrictions on key Russian firms—such as Lukoil and Rosneft—are scheduled to tighten after November 21, and U.S. policymakers are weighing legislation that could penalize any country conducting business with Russia. On the domestic front, Baker Hughes reported a small rise in drilling activity, noting that the U.S. rig count increased by three to 417 in the week ending November 14. Although the immediate export bottleneck has been resolved with the reopening of the port, ongoing attacks on infrastructure, the prospect of more stringent sanctions, and upcoming OPEC+ decisions are likely to keep traders on guard in the days ahead.