Oil prices declined on Monday after signs that Russia’s Novorossiysk Port on the Black Sea had resumed activity following a brief suspension caused by a Ukrainian strike last week.
Brent crude slipped below $64 a barrel, while West Texas Intermediate (WTI) fell toward $59, reversing some of last week’s gains. Reports showed that two tankers moored at the port on Sunday, signaling that crude loading had restarted.
According to Reuters, terminal operations have resumed, suggesting the disruption caused by the attack has eased. The Ukrainian strike had temporarily halted exports, briefly boosting oil prices due to renewed supply fears.
The attack on Novorossiysk, coupled with Iran’s seizure of a tanker near the Strait of Hormuz, had earlier injected a geopolitical risk premium into the market. However, traders say the broader outlook remains bearish due to rising global supply.
The OPEC+ alliance and several non-member producers have increased production, creating a surplus that continues to limit price gains. At the same time, refinery margins are rising globally amid persistent disruptions, including attacks on Russia’s infrastructure, outages in Asia and Africa, and plant closures in Europe and the US, which have reduced refined fuel supply.
In a related development, Serbia is seeking to regain control of its only oil refiner, NIS AD, which is currently owned by a Russian company. President Aleksandar Vucic said Serbia is ready to pay a premium to separate the firm from US sanctions. Discussions with potential investors from Asia and Europe are underway.
