Particle.news
Download on the App Store

Oil Slides as Novorossiysk Restarts and Sanctions Squeeze Russia’s Urals

Pre‑sanctions cutbacks by Indian and Chinese refiners have driven a steep discount for Urals versus Brent.

Overview

  • Russia’s Novorossiysk port resumed crude loadings after a two‑day halt, with industry sources and LSEG data confirming activity as Brent eased near $64 and WTI around $60.
  • The brief suspension, which alongside a nearby CPC terminal represents roughly 2% of global supply, gave way to renewed focus on ongoing Ukrainian strikes on Russian oil infrastructure.
  • U.S. sanctions barring deals with Rosneft and Lukoil after Nov. 21 are already pressuring Moscow’s revenues, and President Donald Trump signaled willingness to sign broader sanctions legislation if he retains final implementation authority.
  • Major Indian refiners and China’s Sinopec and PetroChina have halted direct purchases, pushing Urals loaded at Novorossiysk down to about $36.61 per barrel and widening its discount to Brent to roughly $23.5.
  • JPMorgan estimates about 1.4 million barrels per day of Russian crude sit in floating storage, while Goldman Sachs and the IEA flag a sizeable supply surplus into 2026 that weighs on price expectations.