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Oil Slips as Novorossiysk Restarts, Sanctions Pressure Russian Barrels

Markets now focus on looming U.S. curbs on Rosneft and Lukoil, which are driving deep Urals discounts.

Overview

  • Loadings at Russia’s Novorossiysk hub resumed after a two-day halt from a Ukrainian strike, easing the near-term supply shock.
  • Brent traded near $64 and WTI around $60 as last week’s disruption premium faded with the port’s quick restart.
  • Urals at the Black Sea fell to about $36.61 per barrel, with discounts to Brent widening to roughly $23–24 as buyers stepped back ahead of the Nov. 21 deadline.
  • Major Indian refiners and some Chinese state buyers paused direct purchases from Rosneft and Lukoil, contributing to growing floating storage estimated by traders at around 1.4 million bpd.
  • Goldman Sachs projected a multi‑month 2026 surplus of about 2 million bpd with Brent averaging $56 next year, even as refining margins hit multi‑year highs on outages and sanction-related dislocations.