Oil Prices Surge Amid Supply Disruptions and Sanction Concerns
Global oil prices experienced a notable increase on Friday, November 14, with prices rising by more than two percent, primarily driven by supply chain disruptions following a drone attack on a key oil facility that halted exports from the Russian port of Novorossiysk on the Black Sea.
Brent crude futures rose by $1.38, closing at $64.39 per barrel, reflecting a weekly gain of nearly 1.19%. Meanwhile, U.S. crude futures increased by $1.40, reaching $60.09 per barrel, marking a weekly rise of 0.57%.
Investors are closely monitoring the broader implications of Western sanctions on Russian oil flows and global trading patterns. In this context, the UK issued a license on Friday allowing companies to continue trading with two subsidiaries of Lukoil in Bulgaria after the Bulgarian government took control of their assets.
Conversely, the United States is intensifying its stance by imposing sanctions effective November 21 that will prohibit dealings with Lukoil and Rosneft, as part of efforts to pressure the Kremlin into peace negotiations.
In an analysis of these developments, J.P. Morgan noted that approximately 1.4 million barrels of Russian oil, nearly a third of seaborne exports, have been added to tanker inventories. The bank indicated that this accumulation results from slowed unloading processes due to U.S. sanctions against Rosneft and Lukoil, warning that unloading shipments after the November 21 deadline could complicate the acceptance of oil supplied by these companies, increasing uncertainty in global energy markets.
