Novorossiysk oil port closure triggers immediate surge in global oil prices amid escalating Ukraine conflict

A drone strike on Russia’s crucial Novorossiysk port has halted oil exports, sparking a swift increase in global crude prices and highlighting the escalating tension in Ukraine’s strategic infrastructure targets.

On November 14, 2025, the strategic Russian Black Sea port of Novorossiysk, a critical hub for crude oil and grain exports, suspended its oil export operations following a significant drone strike by Ukrainian forces. Industry sources told Reuters that ...

the overnight assault caused widespread damage to the port’s oil infrastructure, including two oil berths at the Sheskharis terminal and the Sierra Leone-flagged oil tanker Arlan. The attack also injured three crew members aboard the vessel, while nearby residential buildings and oil depots sustained damage. Local authorities later brought the ensuing fires under control and established temporary shelters for affected residents.

Novorossiysk’s importance extends beyond Russian crude exports; it also serves as a major outlet for Kazakhstan’s oil and a vital wheat export hub. The temporary shutdown resulted in a halt to approximately 2.2 million barrels per day, roughly 2% of global oil supply, as Russia’s pipeline monopoly Transneft suspended crude deliveries to the port. Transneft declined to comment officially on the incident, but the halt disrupted crude shipments that had reached 3.22 million tonnes (or 761,000 barrels per day) in October 2025.

The strike intensified concerns about global oil supply security, immediately impacting market dynamics. Oil prices reacted swiftly, with the U.S. crude benchmark WTI futures rising back above $60 per barrel after lingering in the high $50s, while Brent crude futures climbed close to $65 per barrel. Ole Hansen, Head of Commodity Strategy at Saxo Bank, noted that “any prolonged disruption would force traders to source supplies elsewhere, adding further support to prices.” He also emphasised that Brent’s initial 3% surge was partly driven by short covering following recent market fears of potential oversupply.

Ukraine’s campaign targeting Russia’s energy infrastructure has intensified notably in recent months. According to the think tank Center for European Policy Analysis, Ukraine’s strategy has evolved from striking storage tanks to focusing on hard-to-replace refinery equipment, particularly western-made units subject to sanctions. This escalation reflects broader attempts to undermine Russia’s energy export capabilities amidst the ongoing conflict.

Novorossiysk’s vulnerability to drone and missile attacks is not new. Earlier incidents in May and July 2024 included significant drone assaults on the port’s oil terminals and the issuance of sea drone alerts by local authorities. These events underscored the port’s strategic value and the persistent threat posed by Ukrainian forces. For instance, a drone attack in May 2024 led to a temporary shutdown of the port’s Importpischeprom oil products terminal, while the Caspian Pipeline Consortium (CPC), responsible for Kazakhstan’s oil exports, maintained normal operations despite infrastructure challenges.

The CPC’s Black Sea terminal has faced its own disruptions due to previous Ukrainian attacks, with Moscow ordering the closure of some facilities in April 2025 following assaults on pumping stations and oil depots. Despite these restrictions, Kazakhstan and operators like Chevron and ExxonMobil reported no significant interruptions in oil flows, reflecting resilience amid infrastructural adversities.

The port of Novorossiysk also plays a crucial role in Russia’s broader export ecosystem. It handles a variety of commodities beyond oil, including grain, coal, and oil products, making it a vital node in both energy and agricultural supply chains. The recent drone strike, which caused civilian casualties and damaged residential areas, highlights the growing intertwining of military conflict with economic and humanitarian consequences.

Russia’s Defence Ministry reported intercepting hundreds of Ukrainian drones, including dozens targeting the Krasnodar region and the Black Sea, attesting to the increasing scale of drone warfare in the conflict. Concurrently, reports emerged of strikes on other oil infrastructure such as the Rosneft-owned Saratov refinery, which contributes about 140,000 barrels per day to fuel production, reflecting a broader Ukrainian effort to disrupt Russian energy exports.

The latest developments mark another phase in the ongoing tension surrounding Russian oil export infrastructure and contribute to the volatility seen in global energy markets. As geopolitical risks escalate, the response of international markets will likely hinge on the duration and extent of disruptions at key export terminals such as Novorossiysk, challenging traders and policymakers alike to navigate an increasingly uncertain supply landscape.

Source: Noah Wire Services