Oil prices climbed more than 2% on Friday after a Ukrainian drone strike damaged an oil depot in the Russian Black Sea port of Novorossiysk. Brent crude futures rose by $1.34, or 2.13%, to $64.35 a barrel by 0227, while U.S. West Texas Intermediate advanced $1.40, or 2.39%, to $60.09. The operational headquarters of the Krasnodar region said via Telegram that drone fragments struck three residential apartments and an oil depot within a trans-shipment complex, as well as nearby coastal infrastructure.

Both benchmarks had steadied on Thursday, as concerns over imminent sanctions on Russian oil offset worries about global oversupply. The United States has imposed sanctions on Russian oil groups Lukoil and Rosneft in an effort to push the Kremlin toward peace negotiations with Ukraine, with restrictions on transactions involving Russian firms taking effect after November 21. JPMorgan noted that about 1.4 million barrels a day of Russian oil—roughly one-third of the country’s seaborne exports—is now sitting on tankers as unloading slows in response to the new sanctions. The bank warned that once the November 21 cut-off is reached, discharging sanctioned cargoes may become significantly more difficult.

Prices had fallen by more than $2 a barrel on Wednesday after the Organization of the Petroleum Exporting Countries projected that global oil supply would slightly exceed demand in 2026, reversing an earlier forecast of a deficit. Following this drop, which released a build-up of bearish sentiment, markets paused to reassess the direction of crude, according to Haitong Securities.

The U.S. Energy Information Administration reported on Thursday that crude inventories rose far more sharply than expected last week, even as gasoline and distillate stocks declined by less than anticipated. Crude inventories increased by 6.4 million barrels to 427.6 million in the week ended November 7, the EIA said—well above the 1.96 million-barrel rise predicted.