Russian Oil Exports Disrupted at Novorossiysk Port: Drone Attack Fuels Price Surge

Disruption of Russian Oil Exports: A Closer Look at the Novorossiysk Attack

Industry insiders report that Novorossiysk, Russia's largest oil export port on the Black Sea, temporarily halted oil export operations on Friday. This suspension is attributed to what local authorities claim was a Ukrainian drone attack. The port is a crucial transit point, handling approximately 2.2 million barrels of oil per day, representing about 2% of global supply. This incident marks one of the most significant attacks on Russian oil export infrastructure in recent months and follows Ukraine's escalated targeting of Russian refineries in August. These operations aim to weaken Moscow's ability to finance its military operations.

Immediate Impact on Oil Prices

Supply concerns led to a surge in global oil prices by over 2% on Friday, highlighting the market's sensitivity to potential disruptions in oil flows from Russia.

Escalation of Ukrainian Attacks

This year has witnessed an escalation in Ukrainian long-range aerial and maritime drone attacks targeting Russian oil infrastructure. These attacks have included ports in the Baltic and Black Seas, trunk pipeline systems, and multiple refineries. Ukrainian President Volodymyr Zelenskiy affirmed that Kyiv has also launched long-range cruise missiles at targets inside Russia, stating that such strikes are achieving "increasingly successful" results.

Operational Disruptions

Sources told Reuters that Russian pipeline operator Transneft has been forced to suspend oil supplies to the Novorossiysk port. The company declined to comment on these reports. The Caspian Pipeline Consortium (CPC), which exports oil from Kazakhstan via the nearby Yuzhnaya Ozereevka terminal, halted oil loading operations for several hours before resuming after an air raid alert was lifted. CPC plans to export 1.45 million barrels per day of oil from the Yuzhnaya Ozereevka terminal, located approximately 15 kilometers southwest of Novorossiysk, this month. Interfax news agency reported that drone fragments fell in the area of the Russian grain terminal NKHP, but the terminal continued to operate normally, according to General Director Yury Medvedev.

Damage from the Attack

Russian officials reported that the attack also damaged a docked ship, an apartment building, and an oil depot in Novorossiysk, resulting in injuries to three crew members. Transportation and logistics company Delo stated that drone fragments fell on a container terminal in Novorossiysk, but operations continued as normal. British maritime security firm Ambrey reported that a crane and several containers were damaged. A non-sanctioned container vessel docked alongside the pier sustained some collateral damage, but no injuries were reported as the crew took shelter in a safe muster point inside the vessel.

Novorossiysk Hit Hardest

According to industry sources, Russian crude oil shipments via Novorossiysk's Sheskharis terminal totaled 3.22 million tonnes (approximately 761,000 barrels per day) in October. The figure for the first 10 months of this year stood at 24.716 million tonnes. Reuters also reported that total oil product exports via Novorossiysk in October were 1.794 million tonnes, and total oil product exports were 16.783 million tonnes from January to October. Three industry sources stated that the Ukrainian attack hit two berths at the Sheskharis terminal. Berths No. 1 and 1A handle tankers with deadweight of 40,000 tonnes and 140,000 tonnes, respectively. Two of the sources said that the Sierra Leone-flagged oil tanker Arlan was also hit in the attack. "Novorossiysk was hit hardest," said Krasnodar region governor Veniamin Kondratyev, where Novorossiysk is located. "Overnight, more than 170 people and 50 pieces of equipment were involved in the cleanup after the attack, quickly extinguishing the fire and helping residents." Kondratyev said that three injured crew members on the damaged ship are receiving treatment in the hospital. Local officials later said that the fire at the oil depot at the Sheskharis terminal, which handles crude and oil product exports, had been extinguished. They indicated that coastal structures were also damaged but provided no details. Reuters was unable to verify the specific details of the attack, and Ukrainian officials had no immediate comment.