Seoul: Oil prices fell in early Asian trading on Monday, giving up last week's gains, as loading operations resumed at Russia's main export hub in Novorossiysk after a two-day halt at the Black Sea port, which had been subjected to a Ukrainian attack. Brent crude futures fell by 58 cents, or 0.9 percent, to reach $63.81 a barrel at 00:50 GMT. U.S. West Texas Intermediate (WTI) crude futures were traded at $59.50 a barrel, down 59 cents, or 1.0 percent from Friday's close.
According to Yemen News Agency, both benchmark crudes rose by more than two percent on Friday, ending the week with modest gains, after exports were suspended at the Novorossiysk port and the nearby Caspian Pipeline Consortium terminal, affecting the equivalent of two percent of global supplies. This temporary disruption had initially led to concerns about a tighter oil market, which contributed to the rise in prices.
Earlier this month, the OPEC+ alliance agreed to raise production targets for December by 137,000 barrels per day, the same level as in October and November. It also agreed to pause the increase in the first quarter of next year. This decision by OPEC+ reflects a cautious approach to managing global oil supply amid varying market conditions.
Data from oilfield services company Baker Hughes on Friday showed that the number of U.S. oil drilling rigs rose by three to reach 417 in the week ending November 14. The increase in drilling activity suggests a possible uptick in U.S. oil production, which could further influence global oil prices in the coming weeks.