Novorossiysk port suspends oil exports after Ukraine attack - Reuters
After the night attack, the port of Novorossiysk suspended oil exports, Reuters reports. The Sheskharis oil terminal, a key infrastructure of Russia's Transneft, was hit.
The suspension resulted in a sharp rise in global oil prices.
Market reaction
According to Reuters:
Brent has risen in price by 1,6%, having reached USD 64 per barrel;
WTI increased by 1,8%, to the level of 59.7 USD.
Analysts say that the market has reacted to the risks to Russian oil transit through the Black Sea and potential disruptions in supply to global markets.
Sheskharis complex«
є the final point of the Transneft pipeline«,
is used to export a significant portion of Russian oil,
plays a key role in securing Russia's energy market revenues.
Damage to the facility led to a complete shutdown of operations and a large-scale fire, which Russian services are trying to extinguish.
Context.
Ukrainian attacks on Russian logistics and energy hubs have been going on for several months. Novorossiysk is one of the most strategic facilities through which Russia exports oil to world markets.
Previous attacks on the oil harbours of Tuapse and Novorossiysk have already caused temporary disruptions to Russian ports.
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