Oil prices advanced on Friday, lifted by renewed supply concerns after a Ukrainian drone strike hit infrastructure in Novorossiysk, a key Russian export center on the Black Sea.

By 07:01 GMT, Brent crude was up 79 cents, or 1.25%, to $63.80 a barrel, while U.S. West Texas Intermediate crude rose 82 cents, or 1.38%, to $59.50. Both benchmarks had initially surged more than 2% during early Asian trading before trimming gains. For the week, Brent was slightly higher while WTI was modestly lower.

Russian officials reported that the attack caused damage to a vessel, nearby residential buildings, and an oil depot, injuring three crew members.

June Goh, senior oil market analyst at Sparta Commodities, said “Ukrainian drone attacks … have sparked new fears of oil supply flow disruptions as this port is the second largest oil export hub in Russia,” noting that the strike occurred less than two weeks after a major incident in Tuapse.

She added: “The extent of the damage is not yet known but if the pattern of escalation continues, then there would be a supply curtailment both in crude and product exports out of Russia.”

Industry data indicates that Novorossiysk handled 3.22 million tonnes of crude exports in October—around 761,000 barrels per day—and 1.794 million tonnes of oil products.

The rebound in prices comes after both Brent and WTI slid roughly 3% on Wednesday, pressured by an OPEC forecast showing global supply is likely to slightly exceed demand in 2026, a shift from previous deficit projections.

U.S. data also contributed to market volatility. The Energy Information Administration reported a sharp rise in crude stockpiles last week, with inventories climbing 6.4 million barrels to 427.6 million—more than triple analysts’ expectations.

Meanwhile, investors are closely watching how newly enacted U.S. sanctions targeting Russian oil firms could reshape trade flows. Washington has barred transactions with Rosneft and Lukoil after November 21 as part of broader efforts to pressure Moscow.

JPMorgan said Thursday that nearly 1.4 million barrels a day of Russian crude—almost one-third of its seaborne exports—has accumulated in floating storage as sanctions slow offloading. The bank warned that unloading could become considerably more difficult after the sanctions deadline.

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