Oil Prices Rise After Ukrainian Drone Strike on Russian Port of Primorsk

Operations at the Primorsk port and the Oust-Luga pumping stations have been suspended, although reports are still being verified. Satellite images revealed that two oil tankers remained docked at the port, while authorities reported that a fire on one vessel was quickly extinguished. This attack, one of Ukraine's most significant, has heightened supply risks. Meanwhile, the International Energy Agency (IEA) anticipates a stronger global supply in 2025 as OPEC+ increases its production. Notably, Saudi Arabia has ramped up its exports to China to 1.65 million barrels per day in October. However, OPEC maintains solid demand forecasts for 2025-2026. In Russia, oil revenues reached nearly record levels in August, although shipments from the Kozmino port are expected to decline in the coming weeks. Overall sentiment has also been bolstered by expectations of interest rate cuts from the Federal Reserve following weak U.S. data, which could support demand, despite a 3.9 million barrel increase in U.S. crude inventories.