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  • Oil & Gas - News
  • Updated: Mar 26, 2021

Oil Prices Climb On Fears Of Extended Suez Canal Blockage

Oil Prices Climb On Fears Of Extended Suez Canal Blockage

Oil prices went on the rise on Friday, edging up 2 percent to reverse previous selloff.

Fears are rising that it may take an extended period of time to remove a giant container ship that has been blocking the Suez Canal, and consequently shortening the supply of crude and refined products.

Brent crude was higher by $1.09, or 1.8 percent, at $63.04 a barrel by 08:50 WAT, after dropping 3.8 percent on Thursday. U.S. West Texas Intermediate (WTI) crude was up $1.22, or 2.1%, at $59.78 a barrel, having tumbled 4.3% a day earlier. Both benchmarks were on track for a small weekly loss, following a more than 6 percent decline last week.

READ MORE: Oil Prices Plummet On Renewed Lockdowns

It is however worthy of note that oil prices have been on a downward spiral overall, as this would make the third consecutive weekly loss, which was sponsored by fresh coronavirus lockdowns in Europe.

The trapped container ship is blocking traffic in the Suez Canal, one of the world’s busiest shipping channels for oil and refined fuels, grain, and other trade between Asia and Europe.

Officials stopped all ships entering the canal on Thursday, and a salvage company said the vessel may take weeks to free.

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