Attack on ship near Novorossiysk port may have effect on Russian oil exports – FT
A Ukrainian uncrewed surface vessel attack, which resulted in damage to a Russian naval ship near Novorossiysk port, has jeopardised the infrastructure of Russian oil exports in the Black Sea.
Source: Financial Times
Details: Financial Times noted that the Security Service of Ukraine (SSU), together with the Ukrainian Navy, struck a Russian naval vessel near Novorossiysk port, using a drone. The strike damaged the vessel and may have jeopardised the oil export infrastructure that helps finance Russia's invasion of Ukraine.
Quote: "The attack on oil export infrastructure is likely to cause concern in the White House and other western capitals. The US has led the push to keep Russian oil in the market to stop global prices from rising and damaging the world economy."
Novorossiysk is Russia's main Black Sea oil port, exporting about 600,000 barrels per day. It is also known as the main oil export point from Kazakhstan, where the Caspian Pipeline Consortium pipeline ends, with a capacity of 1.2 million barrels per day.
A former CIA analyst, conducting research on commodities at RBC Capital Markets, said the US will not accept any measure that poses risks reducing the Russian oil supply to the market.
The former CIA analyst added that a concern in Washington is that Western support for Ukraine will be harder to sustain if a broader energy crisis emerges.
"Oil prices have risen almost 15 per cent in the past month to nearly $85 a barrel, but the market reaction to Friday’s attack was relatively muted, with Brent crude up 1.2 per cent to $86 a barrel," Financial Times noted.
Background: Ukraine has posted a coastal report declaring the water areas of six Russian ports in the Black Sea to be under military threat on Friday, 4 August.
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