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Oil Slips as Novorossiysk Restart and U.S. Stock Builds Reinforce Oversupply

Looming U.S. sanctions on Rosneft and Lukoil are reshaping Russian flows.

Overview

  • Loadings at Russia’s Novorossiysk port resumed after a two-day halt, reversing last week’s disruption-driven gains in Brent and WTI.
  • Ukraine reported strikes on the Ryazan and Novokuibyshevsk refineries, keeping the risk of renewed export interruptions in focus.
  • American Petroleum Institute data showed a 4.45 million‑barrel U.S. crude build with product increases, reinforcing concerns that supply is outpacing demand.
  • Ahead of the Nov. 21 sanctions deadline, major buyers in India and China paused direct purchases from Rosneft and Lukoil, pushing Urals to about $36.6 a barrel and widening its discount to Brent to roughly $23.5 while floating storage swelled to an estimated 1.4 million bpd.
  • Analysts including Goldman Sachs and the IEA flagged a large 2026 surplus even as global refining margins hit multi‑year highs, supporting diesel and gasoline prices despite pressure on crude.