(RTTNews) – Crude oil prices were sharply higher in trading on Friday, following a modest rise seen in the previous session.
Crude for December delivery was last seen trading up $1.28, or 2.2 percent, at $59.97 a barrel, after rising $0.20, or 0.3 percent, to $58.69 a barrel during yesterday’s session.
The sharp rise in crude oil prices followed a Ukrainian drone attack that damaged a docked ship, apartment buildings and an oil depot in the Russian Black Sea port of Novorossiysk.
The attack caused the port to halt oil exports and caused oil pipeline monopoly Transneft to suspend crude supplies to the outlet, two industry sources told Reuters.
Additionally, Russia carried out massive airstrikes on the Ukrainian capital, causing damage to residential buildings across the city.
Concerns about Russian production helped offset concerns about the supply and demand balance that contributed to a sharp decline in the price of crude on Wednesday.
The most recent forecast from the International Energy Agency indicates that supply could exceed demand by about 4 million billion barrels per day in 2026.
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