Oil Today, Nov 17: Prices Drop as Russia’s Novorossiysk Port Restarts Operations
Oil Price slipped today after signs that Russia’s key Black Sea port of Novorossiysk has restarted crude loadings, easing the immediate supply shock from last week’s strike. Brent crude futures for January traded around 63.80 dollars a barrel in Asian hours, down about 0.9 percent, while West Texas Intermediate futures were near 59.47 dollars, off about 1 percent, giving back part of Friday’s sharp gains.
According to Bloomberg reporting carried by Gulf News and analysis from MUFG and Investing.com, the restart of Novorossiysk operations reduced short term supply risk that had lifted prices more than 2 percent at the end of last week, when exports equal to roughly 2 percent of global oil supply were briefly halted
Oil Price market overview after the Novorossiysk restart
Brent crude, the main global benchmark, dipped below 64 dollars a barrel after today’s move, having closed more than 2 percent higher on Friday when the port shutdown news first hit the market.
West Texas Intermediate, the United States benchmark, fell back toward 59 dollars, also reversing part of its Friday jump.
As of late evening United States time, Brent futures were down close to 1 percent at 63.80 dollars and WTI futures were down about 1 percent at 59.47 dollars.
Why did the Oil Price fall today? Oil Price fell mainly because traders saw evidence that crude loadings at Novorossiysk had resumed, which meant the sudden loss of supply from last week looked less severe than feared.
How prices reacted to last week’s attack
On Friday, both Brent and WTI rallied more than 2 percent after Ukraine launched a high profile attack on Novorossiysk and a nearby Caspian Pipeline Consortium terminal. The strike caused damage and halted exports equal to around 2 percent of the global supply.
Bloomberg reporting via Gulf News notes that the attack, together with Iran’s seizure of a tanker near the Strait of Hormuz, added a fresh geopolitical premium and left crude with a modest weekly gain despite growing signs of surplus supply.
Today’s pullback shows that part of that risk premium is fading as the supply outlook from the Black Sea looks less tight.
Key drivers of the Oil Price move today
Novorossiysk is one of Russia’s most important oil outlets on the Black Sea. When operations stop, fewer barrels can leave the country, and this can quickly worry buyers in Europe, the Middle East and Asia. That worry shows up in futures markets as higher prices.
Gulf News cites tanker tracking which shows two tankers moored at Novorossiysk on Sunday, suggesting that the terminals are back in action and crude loading has resumed.
Investing.com also reports that tankers were again loading crude at the port by Sunday, which helped ease the immediate supply crunch that had driven prices higher at the end of last week.
What does the Novorossiysk restart mean for supply? When a port like Novorossiysk restarts, more barrels can move out by sea again. That means buyers believe they will get their cargoes, so they feel less need to pay a big premium in the futures market for fear of shortage.
Other Russian supply risks and refinery attacks
Even as port activity recovers, Russian oil infrastructure remains under pressure. Investing.com notes that Ukraine’s military says it struck Russia’s Ryazan refinery on Saturday and the Novokuibyshevsk refinery in the Samara region on Sunday.
Analysts quoted by Investing.com say the oil market is still likely to remain in a large surplus through 2026, yet they also warn that the scale and intensity of drone attacks on Russian energy sites is rising, adding supply disruption risk on top of that surplus backdrop.
Strait of Hormuz and Middle East risk premium
The risk story is not limited to the Black Sea. Both Bloomberg reporting, via Gulf News, and the analysis cited by Investing.com highlight that Iran’s seizure of an oil tanker near the Strait of Hormuz has also been adding tension.
The Strait of Hormuz is one of the world’s key oil chokepoints. ING analysts, quoted by Investing.com, point out that about 20 million barrels per day pass through this narrow waterway.
When an incident happens near such a chokepoint, traders quickly add a risk premium to the Oil Price, because any long lasting blockage could affect fuel supply to Asia, Europe and the United States.
Oil Price, OPEC plus policy and global supply balance
Oil Price today is not only about war related risks. Bloomberg reporting carried by Gulf News and MUFG research both stress that the market is facing a large surplus as OPEC plus members and other producers outside the group ramp up output.
That extra supply limits how far prices can rise, even when sudden shocks like the Novorossiysk strike push them up for a short time.
MUFG notes that oil prices eased today after signs that the Russian port had restarted, in a market already grappling with this growing surplus.
Russia exports under tighter sanctions
The supply story from Russia has another layer. Washington has imposed new sanctions that bar companies from dealing with Russian oil majors Lukoil and Rosneft after 21 November. That is forcing some buyers to unwind contracts and raises questions over how much crude could become stranded.
MUFG adds that China and India are still absorbing some Russian barrels that are constrained by United States sanctions.
This mix of sanctions, rerouted flows and extra output from OPEC plus and others shapes the supply side of the Oil Price.
Demand outlook, Asia buying and refinery margins and what this means for the Oil Price
The demand picture today is more steady than dramatic. MUFG comments that China and India continue to take in Russian crude, helping to keep barrels moving into key Asian markets despite sanctions.
This ongoing demand from large buyers in Asia supports the overall oil market today, even as the Novorossiysk restart has trimmed short term supply fear.
Refinery margins and tight fuel markets
Both Gulf News and MUFG highlight that global refinery margins have surged. The causes include repeated strikes on Russian energy sites, outages at major plants in Asia and Africa and permanent refinery closures in Europe and the United States.
These issues have reduced supplies of diesel and gasoline, which keeps fuel markets tight even as crude itself is in surplus. That is an important detail for everyday readers. Crude Oil Price may ease slightly, yet local fuel costs at the pump in regions such as Europe, the Middle East and the United States can stay firm because refining capacity is under strain.
When refineries pay more for their margins, they are often slower to pass on lower crude prices to drivers and households.
Trader sentiment, hedging and what comes next for the Oil Price
Analysts at ING, quoted by Investing.com, say that while the market is likely to remain in a large surplus through 2026, supply risks are building, both from drone attacks on Russian infrastructure and from incidents near the Strait of Hormuz.
This mix creates a push and pull in trader positioning. On one side, the Novorossiysk restart calms part of the Black Sea oil shipments story. On the other side, ongoing attacks and new sanctions keep a floor under the Oil Price.
Role of exchanges and social media
In periods of fast moving news, traders watch price screens, data and also social media. Posts from exchanges and commodity platforms help users track hedging tools and contract changes in real time.
A recent post from NCDEX on X, is one example of the type of updates market participants fold into their daily view of risk and hedging, alongside formal research from banks and agencies.
How port operations tie to futures pricing
Ports like Novorossiysk link the physical and paper markets. When a port shuts, fewer tankers load. Physical buyers fear they may not receive expected barrels, so they bid up prompt cargoes and near month futures. When operations resume and tankers start loading again, that fear eases.
The change then appears in futures screens as lower prices and a smaller risk premium.
Today’s Oil Price move shows this clearly. Friday’s shutdown shock lifted Brent and WTI by more than 2 percent. Today, with loadings reported to have restarted and two tankers again moored at the port, benchmarks have given back part of that move.
Conclusion
In short, the Novorossiysk restart has taken some heat out of the Oil Price today by easing the most urgent supply fears from the Black Sea, even as the wider market still balances a growing surplus against persistent risks in Russia and the Middle East.
FAQs
Oil Price fell today mainly because Russia’s Novorossiysk port on the Black Sea resumed crude loadings after last week’s strike related shutdown. The restart eased fears of an immediate shortage of barrels equal to roughly 2 percent of global supply that had been halted after the attack.
With tankers again moored and loading at Novorossiysk, Black Sea oil shipments from Russia look more stable in the near term. That stability matters for buyers in Europe and in the Mediterranean region, who rely on these routes for supply.
If the Oil Price stays a bit lower after the port restart, it can gradually take some pressure off fuel costs for drivers. However, high refinery margins and outages in Asia, Africa, Europe and the United States mean diesel and gasoline markets are still tight, so changes at the pump may be slow.
Yes. Iran’s seizure of a tanker near the Strait of Hormuz keeps a layer of risk in the market, because about 20 million barrels per day move through this chokepoint. Even with Novorossiysk back, traders still watch this route closely.
The research cited here focuses on supply, especially Russia exports, sanctions and Middle East tension. Demand from China and India, as well as broader economic trends, will also matter for the next move, but those drivers are less in focus in today’s reports.
Disclaimer
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
