Oil prices dipped on Tuesday as concerns over supply eased with the resumption of loadings at a Russian export hub. The hub, which was briefly halted due to a Ukrainian drone and missile strike, has resumed operations, alleviating some of the pressure on global oil supplies.

The Russian export hub, located in Novorossiysk, and a nearby Caspian Pipeline Consortium terminal, account for approximately 2.2 million barrels per day, or roughly 2% of global supply. The temporary halt in exports on Friday had pushed crude prices up by more than 2%. However, with the resumption of loadings, traders are now refocusing on the longer-term impact of Western sanctions on Russian oil flows.

As of 0520 AM WAT, Brent crude futures were down 46 cents, or 0.72%, at $63.74 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were down 45 cents, or 0.75%, at $59.46 a barrel. The U.S. Treasury has stated that sanctions imposed in October on Rosneft and Lukoil are already affecting Moscow’s oil revenues and are expected to curb Russian export volumes over time.

The resumption of oil loadings at the Novorossiysk port on Sunday followed a two-day suspension triggered by the Ukrainian missile and drone attack. The development has eased concerns over supply disruptions, contributing to the decline in oil prices. Meanwhile, the U.S. is considering further sanctions on Russia, with President Donald Trump indicating his willingness to sign Russia sanctions legislation, provided he retains final authority over its implementation.

Looking ahead, oil prices are expected to decline through 2026, according to Goldman Sachs, due to a significant supply wave that will keep the market in surplus. However, the investment bank notes that Brent could rise above $70 a barrel in 2026/2027 if Russian output falls more sharply than anticipated. As the situation continues to unfold, traders and investors will be closely monitoring the impact of Western sanctions on Russian oil flows and the resulting effects on global oil prices.