Russia's Novorossiysk Port Resumes Oil Loadings After Ukrainian Attack

Russia's Novorossiysk port resumed oil loadings on Sunday after a two-day suspension triggered by a Ukrainian missile and drone attack, two industry sources said and LSEG data showed.

Novorossiysk temporarily suspended oil exports - equivalent to 2.2 million barrels per day, or 2% of global supply - on Friday. Global oil prices rallied by more than 2% on supply fears after the attack.

Two industry sources told Reuters on condition of anonymity that loadings had resumed.

According to LSEG data, two tankers — the Suezmax class Arlan and Aframax class Rodos — are currently loading oil at the port’s berths. The Ukrainian attack damaged two oil berths at Novorossiysk.

The attack on Novorossiysk, Russia’s largest Black Sea export hub, was the most damaging Ukrainian attack to date on Russia’s main Black Sea crude export infrastructure.

Novorossiysk accounts for about a fifth of Russian crude exports and a long shutdown would have forced costly shuttering of oil wells in West Siberia, a step that would have significantly reduced the amount of oil sent to world markets by the world’s second largest exporter.

The attack on Novorossiysk came after months of Ukrainian drone attacks on Russian refineries, oil depots and pipelines. Reuters reported on Thursday that Russia's oil processing has fallen just 3% this year, despite Ukraine's biggest drone attacks to date.

Russian crude oil shipments via Novorossiysk's Sheskharis terminal totalled 3.22 million tonnes, or 761,000 barrels a day, in October, according to industry sources. A total of 1.794 million tonnes of oil products were exported through Novorossiysk in October, the sources said.