Oil rises on supply worries after CPC attack
FILE PHOTO: A drone view of a pump jack and drilling rig south of Midland, Texas, U.S. June 11, 2025. REUTERS/Eli Hartman/File Photo
LONDON, Dec 1 : Oil prices rose 1 per cent on Monday as the Caspian Pipeline Consortium halted exports after a major drone attack and U.S.-Venezuela tensions raised concerns about supply, while OPEC+ agreed to leave oil output levels unchanged for the first quarter of 2026.
Brent crude futures advanced 71 cents, or 1.14 per cent, to $63.09 a barrel by 1143 GMT. U.S. West Texas Intermediate crude gained 68 cents, or 1.16 per cent, to $59.23.
The Caspian Pipeline Consortium, which carries 1 per cent of global oil, on Saturday said it halted operations after a mooring at its Russian terminal on the Black Sea was damaged by a Ukrainian drone. Chevron, a CPC shareholder, said late on Sunday that loadings were continuing at the Russian port of Novorossiysk.
The attacks on the CPC export terminal drove oil prices higher on the back of reduced export volumes, UBS analyst Giovanni Staunovo said.
Ukraine has also attacked two oil tankers, which were heading to Novorossiysk.
The Organization of the Petroleum Exporting Countries and its allies initially agreed on a pause in early November, slowing a push to regain market share with looming fears of a supply glut.
LSEG senior analyst Anh Pham said the market was reacting positively to the news.
"For some time, the narrative has centred on an oil glut, so OPEC+’s decision to maintain its production target provided some relief and helped stabilise expectations for supply growth in the coming months."
Brent and WTI crude futures settled lower on Friday for the fourth straight month, their longest losing streak since 2023, as expectations for higher global supply weighed on prices.
On Saturday, U.S. President Donald Trump said "the airspace above and surrounding Venezuela" should be considered closed, sparking fresh uncertainty in the oil market, as the South American nation is a major producer.
Trump on Sunday said he had spoken to Venezuelan President Nicolas Maduro but did not give details.
