Oil prices have reportedly jumped by around 2% after a Ukrainian attack on Russia’s Novorossiysk port disrupted oil shipments, triggering supply concerns.

The price of Brent crude increased by $1.50 (2.4%) to $64.51 per barrel (bbl) and US West Texas Intermediate climbed $1.57 (2.7%) to $60.26/bbl, according to Reuters.

Reuters noted that industry sources reported that Novorossiysk handled 3.22 million tonnes (mt) of crude oil (761,000 barrels per day) in October, as well as 1.79mt of oil products.

Earlier in the week, both Brent and WTI benchmarks dipped after a report by the Organisation of the Petroleum Exporting Countries projected a balance between worldwide oil supply and demand by 2026, moving away from earlier expectations of a supply shortage.

Meanwhile, data from the US Energy Information Administration indicated that crude inventories rose by 6.4 million barrels (mbbl) to 427.6mbbl for the week ending 7 November.

Reuters added that ongoing sanctions against Russia have added further complexity to global oil flows.

The US has announced a ban on transactions with Russian oil companies Lukoil and Rosneft, effective after 21 November, “as part of efforts to bring the Kremlin to peace talks over Ukraine”.

JPMorgan estimates that nearly 1.4 million barrels per day of Russian oil – nearly one third of the country’s seaborne export capacity – is currently being stored on tankers as sanctions delay unloading operations.

US private equity company Carlyle is reportedly exploring options for the acquisition of Lukoil’s overseas assets.

Lukoil’s planned sale of assets to Gunvor, based in Switzerland, was halted prior to the 21 November sanctions deadline.

Lukoil, which accounts for approximately 2% of global oil production, both domestically and internationally, has announced plans to sell its overseas assets.

These international holdings represent around 0.5% of worldwide oil output and are valued at roughly $22bn, according to 2024 filings, said Reuters.