Oil prices slipped in early Asian trading on Monday, reversing the gains recorded at the end of last week as market participants reacted to the reopening of Russia’s major Black Sea export terminal at Novorossiysk.
Brent crude futures fell by 58 cents, or 0.9%, to $63.81 a barrel at 0050 GMT.
U.S. West Texas Intermediate crude followed the same pattern, losing 59 cents, or 1.0%, to trade at $59.50 a barrel.
The pullback comes after both benchmarks had climbed more than 2% on Friday, finishing the week with modest gains following a temporary halt in crude shipments from Novorossiysk and a nearby Caspian Pipeline Consortium terminal.
The interruption, which lasted two days, had removed the equivalent of around 2% of global crude supply from the market.
Oil loadings at Novorossiysk resumed on Sunday, according to industry sources and data from LSEG.
Even with operations back online, traders remain cautious given Ukraine’s ongoing campaign targeting Russian energy infrastructure.
Ukraine’s military said it struck Russia’s Ryazan refinery on Saturday, and Kyiv’s General Staff reported on Sunday that it carried out another attack on the Novokuibyshevsk refinery in Russia’s Samara region.
Analysts say the renewed targeting of Russia’s refining capacity continues to hang over the market, with disruptions still a key variable for pricing.
Toshitaka Tazawa, analyst at Fujitomi Securities, said investors are balancing short-term market reactions with longer-term considerations.
“Investors are trying to gauge how Ukraine’s attacks will affect Russia’s crude exports in the long term, while also locking in profits after last Friday’s rally,” he said.
He added that expectations of additional supply remain strong.
“Overall, the perception of oversupply from OPEC+ production increases remains,” he said, suggesting WTI is likely to hover near $60 within a $5 trading range.
Beyond supply disruptions, traders are closely monitoring the effect of Western sanctions on Russia’s oil sector.
The United States has imposed sanctions that prohibit dealings with Russia’s major oil companies, Lukoil and Rosneft, after November 21 as part of broader pressure on Moscow to engage in peace talks with Kyiv.
U.S. President Donald Trump said on Sunday that Republicans are preparing legislation that would impose sanctions on any country doing business with Russia, and added that Iran may also be included in future measures.
Meanwhile, OPEC+ continues to adjust its production strategy in response to evolving market conditions.
Earlier in the month, the alliance agreed to increase December output targets by 137,000 barrels per day, matching the planned increases for October and November.
The group also decided to pause production hikes during the first quarter of next year.
In the United States, drilling activity continued to rise.
Data from Baker Hughes showed that the number of oil rigs increased by three to a total of 417 in the week ending November 14.
The uptick reinforces expectations of stable U.S. output heading into early next year, adding another layer to the supply outlook at a time when global markets are already testing the limits of demand.