FX.co ★ Oil Drops as Russian Port Resumes Operations

On Monday, the futures for WTI crude oil declined to $59.50 per barrel, retracting the gains seen in the previous session. This drop followed the resumption of oil loading activities at Russia's Novorossiysk port, which had been halted for two days due to a Ukrainian drone strike. By Sunday, two crude oil tankers, the Arlan and the Rodos, along with the Yanbu oil-product carrier, had arrived at the terminal, indicating a return to normal export operations. The interruption at Russia's second-largest oil export facility had contributed to a modest increase in oil prices the previous week. Adding pressure to prices were concerns over potential oversupply. The International Energy Agency (IEA) recently cautioned about a substantial market surplus that could emerge next year. This surplus might reach approximately 4 million barrels per day, as OPEC and non-OPEC producers increase production while demand growth slows.