Oil prices surged in early Asian trading on Friday, responding to Ukraine's renewed attacks on Russian energy infrastructure. A Ukrainian drone strike on Novorossiysk, a critical Russian Black Sea port and oil export hub, heightened concerns about supply disruptions in an already bearish market. At the time of writing, WTI had risen 1.52% to $59.58, while Brent traded at $63.88.
The attack damaged a ship, nearby apartment buildings, and an oil depot, injuring three crew members. Russian regional authorities confirmed the extent of the damage. Ukrainian forces have increasingly targeted Russian oil refining, storage, and export infrastructure using drones and missiles, with a shift in strategy towards harder-to-replace refinery equipment, much of it western-made and subject to sanctions.
If Ukraine's deep-strike campaign continues and Russia faces further infrastructure losses, global oil markets could face significant supply risks. This is exacerbated by renewed U.S. sanctions, which further suppress Russian oil supply, particularly affecting major companies like Rosneft and Lukoil. Despite these challenges, the broader oil market outlook remains bearish, with rising U.S. crude inventories and warnings of a severe glut in 2026.
