Oil Prices Surge Amid Supply Disruptions and Rising Sanctions Concerns
Global oil markets experienced a significant rise at the close of trading on Friday, November 14, with prices climbing more than two percent. This increase was largely driven by supply disruptions following the halt of exports from the Novorossiysk port in Russia, triggered by a Ukrainian drone attack on a critical oil facility.
Brent crude futures rose by $1.38, closing at $64.39 per barrel, marking a weekly gain of approximately 1.19%. Meanwhile, U.S. crude futures increased by $1.40, settling at $60.09 per barrel, with a weekly increase of 0.57%.
Investors are closely monitoring the complex ramifications of Western sanctions on Russian oil flows and global trade patterns. In this context, the UK issued an exceptional license on Friday allowing companies to continue dealings with two subsidiaries of Lukoil in Bulgaria, following the Bulgarian government's takeover of the assets.
Conversely, the United States is tightening its stance by imposing sanctions that prohibit transactions with Lukoil and Rosneft starting November 21, aiming to pressure the Kremlin to engage in peace talks.
In an analysis of these developments, J.P. Morgan reported that approximately 1.4 million barrels per day of Russian oil, representing nearly one-third of maritime exports, have been added to inventories on vessels. The bank noted that this accumulation is due to slowed offloading operations resulting from U.S. sanctions on Rosneft and Lukoil, warning that "offloading shipments may become more challenging after the November 21 deadline for receiving oil supplied by the two companies," which heightens uncertainty in global energy markets.
