Oil prices fell on Monday, erasing last week's gains, after loading operations resumed at Novorossiysk, one of Russia's main export hubs, following a two-day halt due to a Ukrainian attack on the Black Sea port.
Brent crude futures fell by about 0.9% to $63.75 a barrel. West Texas Intermediate (WTI) crude futures also declined by about 1.1% to $59.42 a barrel.
Both benchmark crude oils rose more than 2% on Friday, ending the week with modest gains, after Russia halted exports from the port of Novorossiysk and a nearby Caspian Pipeline Union terminal, affecting the equivalent of 2% of global supplies.
The port of Novorossiysk resumed loading oil on Sunday, according to two industry sources who spoke to Reuters and data from LSEG, but the escalating Ukrainian attacks on Russian oil infrastructure remain a focus of market attention for fear of further disruption.
The Ukrainian armed forces said on Saturday that they had targeted the Ryazan oil refinery in Russia, while the Ukrainian General Staff confirmed on Sunday that they had hit the Novokobyshevsk refinery in Russia's Samara region.
Toshitaka Tazawa, an analyst at Fujitomi Securities, said, Investors are trying to assess the long-term impact of the Ukrainian attacks on Russian crude oil exports, while simultaneously taking profits after last Friday's price surge.
He added: “In general, markets still hold the view that there is a surplus in supply as a result of increased production from the OPEC+ alliance,” noting that West Texas Intermediate crude may remain close to $60 a barrel, fluctuating within a range of five dollars.
Investors are also monitoring the impact of Western sanctions on Russian supplies and trade routes. The United States imposed sanctions prohibiting dealings with Russian oil companies Lukoil and Rosneft after November 21, in an effort to push Moscow into peace talks on Ukraine.
US President Donald Trump said on Sunday that Republicans are working on legislation that would impose sanctions on any country that does business with Russia, noting that Iran could also be included on that list.
