Oil Dips as Novorossiysk Port Resumes Amid Global Supply Surplus

Oil prices fell after signs that Russia’s Novorossiysk port resumed operations following last week’s Ukrainian strike, with Brent slipping below $64 and WTI toward $59 a barrel. Two tankers moored at the port, signaling the return of crude loading, though the attack had briefly disrupted exports and added a geopolitical premium to prices. Despite these tensions, a global supply surplus from OPEC+ and other producers is limiting price gains. Refinery margins remain high due to ongoing attacks on Russian energy infrastructure, plant outages in Asia and Africa, and permanent closures in Europe and the U.S., tightening diesel and gasoline supply. Separately, Serbia is negotiating to regain control of its only oil refiner, NIS AD, currently under Russian ownership, with potential investors from Asia and Europe involved.

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Novorossiysk Port Resumes Oil Loadings After Ukrainian Attack Disrupts 2.2 Million bpd

Russia’s Novorossiysk port resumed oil loadings on Sunday after a two-day suspension caused by a Ukrainian missile and drone attack, which had temporarily halted exports of 2.2 million bpd, or 2% of global supply. Two tankers, the Suezmax Arlan and Aframax Rodos, were reported loading oil at the port, which had sustained damage to two oil berths. Novorossiysk is Russia’s largest Black Sea export hub, accounting for about a fifth of Russian crude exports, and a longer shutdown could have forced the costly closure of West Siberian wells. The attack follows months of Ukrainian strikes on Russian refineries, depots, and pipelines, though Russian refining has only fallen 3% this year. Exports via the Caspian Pipeline Consortium also resumed after a brief suspension, while total Russian crude shipments through Novorossiysk in October were 3.22 million tonnes (761,000 bpd) and oil product exports were 1.794 million tonnes.

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U.S. Opens Door for Negotiations on $22 Billion Lukoil Asset Sell-Off

The U.S. Treasury has issued licenses allowing potential buyers to negotiate with Lukoil until December 13 regarding the sale of its foreign assets, following sanctions placed on Lukoil and Rosneft for financing Russia’s war in Ukraine. Any sale must fully sever the assets’ ties to Lukoil, with proceeds held in an escrow account that the Russian company cannot access while sanctioned. The U.S. also authorized transactions with Lukoil’s Bulgarian entities until April 29, 2026, supporting Bulgaria’s energy security as it moves to seize the Burgas refinery. Lukoil’s international assets—estimated at $22 billion—include three European refineries, stakes in oilfields across Kazakhstan, Uzbekistan, Iraq, Mexico, Ghana, Egypt, and Nigeria, and hundreds of fuel stations worldwide. Potential buyers include Carlyle, KazMunayGas, and Shell, while Gunvor withdrew from an earlier deal after U.S. objections.

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Sanctions Push Sovcomflot to $27.5M Q3 Loss Amid Rising Costs

Sanctioned Russian state-owned shipowner Sovcomflot reported a Q3 adjusted net loss of $27.5 million, down from a $20.7 million profit in the same period of 2024, as Western sanctions intensified. Revenue fell to $323 million from $340 million, while EBITDA declined to $126 million from $158 million, and operating costs rose to $115 million from $98 million. The loss reflects disruptions caused by sanctions on major Russian producers Rosneft and Lukoil, affecting tanker voyages and forcing shippers to seek alternative buyers such as India. Sovcomflot’s total assets were $6.5 billion with cash of $1.46 billion, and the company maintained a 51% profit margin over the first nine months despite challenges. Russian credit agency Expert RA reaffirmed Sovcomflot’s rating at “ruAAA” with a stable outlook, citing low debt and high projected liquidity.

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BPCL Buys 3.7 Million Barrels of Crude from West Africa, US, and Middle East

India’s Bharat Petroleum Corp (BPCL) purchased about 3.7 million barrels of crude oil last week from West Africa, the United States, and the Middle East through spot deals to replace Russian supplies. The purchases included 1 million barrels of Angola’s Agogo crude from Eni, 1 million barrels of U.S. Mars crude from Shell, 700,000 barrels of Iraqi Ratawi crude from Chevron, and 1 million barrels of Abu Dhabi’s Upper Zakum crude from Trafigura. This marks the first time BPCL bought Angola’s Agogo crude. The buying spree follows the suspension of Russian oil imports last month due to Western sanctions on Russia’s top oil producers. Indian refiners are actively seeking alternative sources to maintain supply and meet domestic demand amid geopolitical disruptions.

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Enbridge Launches $1.4 Billion Expansion to Send More Canadian Oil to the U.S.

Enbridge approved $1.4 billion in expansions to its Mainline and Flanagan South pipelines, adding 250,000 bpd of capacity to move Canadian heavy oil to the U.S. Midwest and Gulf Coast by 2027. The company is also preparing to assess a second-phase Mainline expansion that could add another 250,000 bpd, reflecting expectations that Canadian supply will grow by 500,000–600,000 bpd by 2030. Despite Canada’s desire to diversify exports away from the U.S., Enbridge said the U.S. remains the most logical market, noting it holds “the world’s biggest refining complex.” While Alberta is exploring a new export corridor to Asia via British Columbia, no private company has committed to building such a pipeline, with the expanded C$34 billion Trans Mountain system remaining the only direct route to Asia. Enbridge executives emphasized a strategy of “south first, then west,” citing strong U.S. demand and record Mainline throughput of 3.1 million bpd in Q3.

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China’s October Crude Throughput Up 6.4% YoY Amid Strong Refining Margins

China processed 63.43 million metric tons (14.94 million bpd) of crude in October, a 6.4% increase year-on-year, as refiners boosted throughput to take advantage of improving margins. This represents a slight 2.1% drop from September’s 15.26 million bpd, the highest daily rate since September 2023. From January to October, total crude throughput reached 614.24 million metric tons (14.75 million bpd), up 4% compared to the same period last year. Domestic crude production in October rose 1.3% YoY to 18 million metric tons (4.24 million bpd), with year-to-date output up 1.7% to 180.64 million metric tons (4.34 million bpd). China’s natural gas production also increased, rising 5.9% in October to 22.1 bcm and 6.3% year-to-date to 217 bcm, reflecting broader growth in domestic energy output.

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Sinochem Shuts 240,000 bpd Quanzhou Crude Unit After Fire Injures Seven

China’s Sinochem has shut its No.1 crude unit at the Quanzhou refinery in Fujian province after a fire on Thursday injured seven workers, according to state media and trade sources. The affected unit has a processing capacity of 240,000 bpd within the refinery’s total 300,000 bpd capacity. The Quanzhou plant was already scheduled for full maintenance between late November and January, but the fire prompted an immediate shutdown of the unit. The refinery produces gasoline, diesel, jet fuel, polypropylene, and has ethylene output capacity of 1 million metric tons per year. Sinochem has not provided an official comment on the incident.

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Trafigura Links ‘Dead Cow’ Pipeline to Boost Argentina’s Vaca Muerta Exports

Trafigura has connected its pipeline to Argentina’s Vaca Muerta field via Oldelval, creating a new export route through the port of Bahia Blanca and strengthening crude transportation reliability. The 11 km project, which cost over $30 million, links Oldelval’s Allen-Puerto Rosales system to Trafigura’s refinery and was in planning since 2020. The initiative complements other infrastructure, including YPF’s $1.7 billion Vaca Muerta Oil Sur pipeline, part of a larger 525 km project to Punta Colorada for VLCC exports. Vaca Muerta’s production currently stands at around 300,000 bpd, with plans to increase to 1 million bpd by 2030, supported by multiple operators including Chevron, Shell, and Pan American Energy. The field holds the world’s second-largest shale gas and fourth-largest shale oil reserves, making it a strategic hub for Argentina’s crude exports.

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Iran Seizes Tanker Near Strait of Hormuz Amid Dispute Over ‘Unauthorized Cargo’

Iran confirmed seizing the 73,000-dwt tanker Talara near the Strait of Hormuz on 14 November, saying it carried 30,000 tons of “unauthorised” high-sulphur gasoil. The IRGC intercepted the UAE–Singapore tanker via helicopter after a judicial order and directed it to anchorage, though the specific “handling violations” were not explained. Iran’s Fars agency later claimed the petrochemicals cargo “belonged to Iran,” raising questions given that Tehran often uses commercial disputes or fuel-smuggling allegations as pretexts for seizures. The incident follows a pattern of politically charged detentions, including the 309,000-dwt Niovi (2023), the MSC Aries still held with a $170 million demand, and the St Nikolas (formerly Suez Rajan) seized in March 2024. Analysts speculate this latest seizure may be retaliation for the U.S. seizure of $47 million linked to Iranian oil or possibly linked to tensions surrounding the recent Falcon LPG carrier explosion in the Gulf of Aden.