Oil Falls as Black Sea Risk Dismissed Until Supply Halts Arrive

  • WTI settled near $82, paring earlier gains after ship attacks
  • Sea drones hit Russian naval vessel and tanker in recent days

In this grab taken from video released on Friday, Aug. 4, 2023, a drone maneuvers as it approaches a vessel claimed to be a Russian large landing ship close to the Black Sea port of Novorossiysk.

Source: AP Photo
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Oil dropped as traders shrugged off the risk to commodity ships in the Black Sea until disruptions materialized.

West Texas Intermediate settled below $82 a barrel at the start of the week after rising more than 4% over the previous two sessions. In recent days, sea drones hit a Russian oil tanker and naval vessel, highlighting the threat to fuel flows on a key route to global markets. Still, exports are continuing from the region at a time when the market is relatively well supplied.