Global oil prices rise after Ukraine's attacks on Russia – Bloomberg
Photo: Oil prices jump following Ukraine’s attacks on Russia (Getty Images)
World oil prices showed a slight increase for the first time in several weeks, reportedly after Ukraine attacked a key Russian oil port and Iran’s seizure of a tanker in the Strait of Hormuz, Bloomberg reports.
Ukraine's large-scale strike damaged the Sheskharis oil terminal and hit a tanker in the Russian Black Sea port of Novorossiysk. Russia claimed debris and deployed over 50 firefighting units to deal with the aftermath.
Novorossiysk is a major hub for Russian oil exports, shipping up to 700,000 barrels per day. The nearby terminal processes 1.5 million barrels daily.
The Ukrainian attack and Iran’s tanker seizure reportedly sparked market concerns, which have been growing due to increasing US sanctions on Russia. The new restrictions take full effect on November 21.
Oil futures surged 3% amid rising concerns. Prior to this, prices had been falling by about 14% due to expectations of a large oil surplus. Experts say sanctions and risks from Ukraine’s attacks on Russian oil infrastructure are having an impact, along with Iran’s actions and traditionally higher end-of-year oil demand.
Strike on Sheskharis: what is known
The General Staff of the Armed Forces of Ukraine confirmed that on the night of November 14, Ukraine struck the Novorossiysk naval base in Russia’s Krasnodar region using Neptune missiles and attack drones.
The strike reportedly damaged port infrastructure and the Sheskharis oil terminal, a launcher from the S-400 missile system, and a missile depot. A large explosion caused a major fire.
Russian media reported that the Novorossiysk port urgently halted oil exports after the drone attack, and a state of emergency was declared in the city. Official authorities have not confirmed these reports.
Sheskharis is a major oil terminal in Novorossiysk, owned by Transneft and Rosneft. The terminal handles 35–40 large tankers per month, equivalent to 3.5–4.5 million tons of crude oil, or up to 20% of Russia’s maritime exports.
