Global oil prices rose more than 2% on Friday after a Ukrainian drone strike damaged an oil depot at Russia’s Novorossiysk port on the Black Sea.
Brent crude futures climbed by $1.34 (2.13%) to reach $64.35 per barrel, while U.S. West Texas Intermediate (WTI) increased $1.40 (2.39%) to trade at $60.09 per barrel.
Sources say the drone attack targeted three apartment buildings, an oil depot, a transshipment complex, and coastal infrastructure. The incident came a day after oil prices remained relatively stable, as fears of potential new sanctions on Russian oil helped ease concerns about global oversupply—concerns that had pushed prices down by more than $2 in the previous session.
The United States, aiming to pressure Russia back to the negotiating table amid the Ukraine war, has imposed fresh sanctions on Russian oil companies including Lukoil and Rosneft. Starting November 21, transactions with these companies will be prohibited. According to JPMorgan, sanctions have resulted in up to 1.4 million barrels per day of Russian oil being held up in tankers due to slower cargo offloading—equivalent to roughly one-third of Russia’s seaborne export capacity. Receiving shipments from Russian firms may become even more difficult after November 21, heightening market uncertainty.
Oil prices had dropped by more than $2 on Wednesday following an OPEC report suggesting that global oil supply would slightly exceed demand in 2026—contrary to earlier expectations of a supply deficit.
Analysts at Haitong Securities said the market has now “vented pressure” after Wednesday’s sharp decline and is reassessing the situation.
Meanwhile, the U.S. Energy Information Administration (EIA) reported a larger-than-expected rise in American crude inventories last week. Crude stocks rose by 6.4 million barrels to 427.6 million barrels in the week ending November 7, far exceeding analysts’ expectations of a 1.96 million barrel increase. Gasoline and distillate stockpile declines were also smaller than anticipated.
