Oil prices slipped nearly 1% on Tuesday as supply concerns eased following the restart of loadings at a key Russian export hub. The facility had been temporarily shut down after a Ukrainian drone and missile attack, but operations resumed sooner than expected, prompting traders to reassess the market impact of Western sanctions on Russian crude.
Brent crude futures fell 56 cents (0.9%) to $63.64 a barrel at 07:20 GMT. U.S. West Texas Intermediate (WTI) dropped 54 cents (0.9%) to $59.37 a barrel.
Loadings at Russia’s Novorossiysk port resumed on Sunday after a two-day suspension, according to market sources and LSEG data. Tony Sycamore of IG said crude is trading slightly lower as the resumption came earlier than anticipated.
Exports from Novorossiysk and the nearby Caspian Pipeline Consortium terminal—together accounting for roughly 2.2 million barrels per day, or 2% of global supply—were halted on Friday, which briefly pushed oil prices more than 2% higher.
With operations restored, traders are shifting attention back to the longer-term effects of Western sanctions on Russia’s ability to maintain export volumes.
The U.S. Treasury said sanctions introduced in October on Rosneft and Lukoil are already tightening Moscow’s energy revenues and are expected to gradually reduce Russian shipments. ANZ Research noted that Russian crude is now trading at a sizable discount to global benchmarks.
According to Vivek Dhar of Commonwealth Bank of Australia, concerns are growing about rising volumes of unsold oil on tankers as buyers evaluate the risks of violating U.S. sanctions. Still, he added that Russia has historically managed to adapt to sanctions and will likely find ways around current restrictions.
A White House official said President Donald Trump is prepared to sign new Russia sanctions legislation, provided he maintains authority over how it is enforced. Trump also stated that Republicans are drafting a bill that could penalize any country conducting business with Russia, with Iran potentially included.
Meanwhile, Goldman Sachs expects oil prices to trend lower through 2026 due to a substantial wave of new supply keeping markets oversupplied. However, the bank noted that Brent could climb above $70 a barrel in 2026–2027 if Russian production declines more sharply.
