The Jan’26 Brent Futures contract rallied all morning to $64.91/bbl at 10:50 GMT (time of writing). In the news, Russia’s Black Sea port of Tuapse has suspended fuel exports and its local oil refinery stopped processing crude after Ukrainian drone strikes on 2 November damaged port infrastructure, according to industry sources and ship tracking data. Prior to the strike, Tuapse had planned to increase oil product exports in November, with three tankers docked at the time to load naphtha, diesel, and fuel oil. The facility has been targeted by Ukrainian drones multiple times and mainly supplies markets in China, Malaysia, Singapore, and Turkey. In other news, Western sanctions on Russia and Iran are leading to record amounts of oil being stored on ships, preventing a major oversupply in global markets, according to Gunvor Group CEO Torbjorn Tornqvist. Speaking at the ADIPEC energy conference in Abu Dhabi, he said the sanctions have disrupted trade flows but kept market conditions stable and reduced price volatility. Tornqvist noted the situation is unprecedented and warned that lifting sanctions could cause a glut, as the current storage on water is effectively smoothing out supply imbalances. ADNOC Drilling announced plans to acquire an 80% stake in MB Petroleum Services for an enterprise value of $204mn, expanding its operations across the Gulf region. CFO Youssef Salem noted that despite pressure on oil prices, drilling activity remains strong in the UAE, Oman, and Kuwait, with Saudi Arabia rebounding. The deal is set to close in the first half of 2026, pending regulatory approvals. Finally, the front-month Jan/Feb’26 and the 6-month Jan/Jul’26 spreads are at $0.40/bbl and $0.84/bbl, respectively.
