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Oil Slips After Novorossiysk Restart as Sanctions Drive Urals to Multi-Year Low

Sanctions on Rosneft and Lukoil are already dislocating Russian barrels.

Overview

  • Russia’s Novorossiysk port resumed oil loadings after a two-day halt from a Ukrainian drone and missile strike, easing a short-term supply squeeze that had lifted prices.
  • Brent traded near $63.9 and WTI around $59.6 as the restart erased last week’s disruption-driven gains, according to early Asian trading updates.
  • Urals crude fell to about $36.6 per barrel and its discount to Brent widened to roughly $23.5 as major Indian and Chinese refiners paused direct purchases from Rosneft and Lukoil ahead of the Nov. 21 U.S. deadline.
  • JPMorgan estimates around 1.4 million barrels per day of Russian seaborne exports are sitting in floating storage as buyers pull back and trade flows reroute.
  • Analysts highlight a looming supply glut, with Goldman Sachs projecting a roughly 2 million barrels per day surplus and lower average prices in 2026 while OPEC+ nudges output higher and non-OPEC supply expands.