Oil Prices Surge on Russia Supply Disruption Fears

Market Reaction to Ukraine Conflict Escalation

Oil prices experienced a significant 2% increase following Russia's decision to suspend oil exports from the Novorossiysk port after a Ukraine drone attack. The attack caused damage to a ship, an apartment block, and an oil depot, resulting in injuries to three crew members.

Price Movements in Global Markets

• Brent crude for January 2026 delivery rose by US$1.50 (2.4%) to US$64.51 per barrel
• WTI crude for December 2025 delivery increased by US$1.57 (2.7%) to US$60.26 per barrel

Geopolitical Context and Market Implications

The price surge was driven by concerns over potential supply disruptions from Russia, one of the world's major oil producers. The Novorossiysk port is a critical energy hub, and any disruption to operations there has significant implications for global oil markets.

Market Outlook

The immediate market reaction reflects investor concerns about the escalation of the conflict between Ukraine and Russia and its potential impact on global energy supplies. Market participants will be closely monitoring developments in the region and assessing their implications for oil production and distribution.