Crude Oil Soars On Concerns About Russian Output

(RTTNews) - Following the modest rebound seen in the previous session, the price of crude oil showed a much more substantial move to the upside during trading on Friday.

Crude for December delivery was last seen trading at $59.97 a barrel, up $1.28 or 2.2 percent, after rising $0.20 or 0.3 percent to $58.69 a barrel during yesterday's session.

The sharp increase by the price of crude oil came after a Ukrainian drone attack damaged a docked ship, apartment buildings and an oil depot in the Russian Black Sea port of Novorossiysk.

Two industry sources told Reuters the attack led the port to pause oil exports and oil pipeline monopoly Transneft to suspend crude supplies to the outlet.

In addition, Russia launched large-scale air strikes on the Ukrainian capital, damaging residential buildings across the city.

Concerns about Russian output helped offset worries about the supply and demand balance that contributed to a steep drop by the price of crude oil on Wednesday.

The International Energy Agency's most recent forecast indicated that supply could exceed demand by about 4 million billion barrels per day in 2026.