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Oil rises by more than 4% after a ship stuck in the Suez Canal

24 Mar 2021 04:45 PM

Oil prices rose today by more than 4% following the stranding of a ship in the Suez Canal, which raised concerns about supplies, amid fears of a slow recovery in demand due to the closure in Europe, which limited the gains slightly.

The port agency reported that the container ship that was blocking the Suez Canal has been partially floated, and traffic is expected to resume soon.

US crude rose, again trading higher than $ 59 a barrel, after reaching during yesterday's trading its lowest level since February 12 around the levels of $ 57.24 a barrel, and Brent crude rose to trade around $ 62.75 a barrel, after declining by 6% yesterday.

The recent oil declines came because of market concerns about the global economic recovery and oil demand due to concern about the spread of a third wave of Coronavirus across Europe.  this has led to new measures and closures in countries such as Italy while also France imposed restrictions, at a time when Germany reversed the decision to close Stricter Easter closure, Germany is the largest consumer of oil in Europe.

In addition to the selling pressure on oil prices, the American Petroleum Institute data showed that US crude oil inventories rose by about 2.9 million barrels last week, and the Energy Information Administration report showed inventories rose by 1.9 million barrels last week.

OPEC+ meets on April 1 to consider the possibility of reducing the latest production cut, or perhaps maintaining the current supply level to provide more support to the markets.

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