Oil Prices Dip as Russian Shipments Boost Supply

Oil Prices Dip as Russian Shipments Boost Supply

Oil prices extended their decline on Tuesday after reports indicated that shipments had resumed at a Russian oil depot hit earlier by a Ukrainian drone attack.

International benchmark Brent crude was trading at $63.31 per barrel, down 0.67% from the previous close of $63.74. US benchmark West Texas Intermediate (WTI) also decreased by about 0.72% to $59.27, compared to $59.70 in the prior session.

The restart of shipments on Sunday after a two-day halt eased supply concerns and put additional downward pressure on prices.

Andrey Kravchenko, head of Russia’s Novorossiysk region, said in a statement on Telegram last week that Ukraine had launched a heavy drone attack on the city.

Kravchenko said a “state of emergency” was declared after the drone attack damaged several buildings and pieces of infrastructure. He added that an oil depot in the region was also hit in the strike.

Analysts say ongoing sanctions on Russia are expected to bolster long-term supply concerns in the oil market, although any disruptions could be temporary if Moscow finds ways to circumvent the restrictions.

On the demand side, investors are watching for signals on the Federal Reserve’s (Fed) interest rate policy. In money markets, the probability of the Fed cutting interest rates in December has slipped to 43%.

The minutes of the Federal Open Market Committee’s latest meeting, due Wednesday, will be closely monitored for clues on the interest rate outlook. A potential rate cut could support demand expectations and lift oil prices.Dangote Cement Plunges as Investors Trim Shareholding