Petrol Prices Decline with Resumed Activities at Novorossiysk Port

Petrol Prices Are Recording a Decline

The price of Brent crude oil is trading at $63.31 per barrel. Yesterday, Brent crude oil rose to levels of $64.37 but closed the day at $63.74. As of 09:40 today, the price has decreased to $63.31, down by 0.7%. Meanwhile, US crude oil (WTI) is changing hands at $59.27.

Ukraine's Attack and Resumed Loadings

The decline in prices is attributed to the resumption of loadings after Ukraine's drone attack on an oil depot in Russia, which had temporarily halted operations. Loadings resumed on Sunday after a two-day stoppage. This development has eased supply concerns in the market, creating downward pressure on prices.

Situation in Novorossiysk

The governor of Russia's Novorossiysk region, Andrey Kravchenko, stated last week that Ukraine had carried out intense drone attacks in the region. Following the attack, he mentioned that an "emergency" had been declared and that some structures and infrastructure had been damaged. Additionally, it has been reported that an oil depot in the region was also affected by this attack.

Sanctions and Market Expectations

Experts indicate that ongoing sanctions against Russia will continue to support supply concerns in the oil market for a considerable time, while warning that any disruptions could be temporary if Russia seeks ways to circumvent the sanctions. On the other hand, the likelihood of a potential interest rate cut by the American Federal Reserve (Fed) in December has decreased to around 43%. The minutes of the Federal Open Market Committee (FOMC) to be released on Wednesday will be closely watched for expectations regarding interest rate policy. A possible interest rate cut could support demand outlook and potentially raise oil prices again.