Global Oil Prices Reduce After Suez Canal Traffic Improves

World oil prices have crashed as traffic resumed on the Suez canal this week after a massive container ship obstructing the waterway was let go,as the Taiwan-based evergreen marine container ship (panama) flagged MV ‘ever given’ trolled on the course way.

The Suez canal authority said that MV ever given was back afloat and was resuming traffic on one of the most essential routes for global trade and crude shipments that had been closed for nearly a week.

Crude prices had fallen earlier after the ship was partially freed, but when salvage experts said the hardest work was ahead, prices rebounded quickly afterwards.

Only hours later they managed to free the ship completely, and oil prices fell back while traders also shunned Thursday’s OPEC producers’ meeting.

Analysts say that it will take some time for container transport to resume to normal and that ”some leftover downstream ripple effects should be expected,” warned Rystad energy analyst Louise Dickson, saying “oil loadings, as well as some oil demand could be affected as manufacturers may have to close or pause production as they wait for delayed goods to arrive at plants.”

Image handout picture released by the Suez canal authority on march 25, 2021 shows Egyptian tug boats trying to free Taiwan-owned cargo MV ever given (evergreen), a 400-metre- (1,300-foot-)long and 59-metre wide vessel, lodged sideways and impeding all traffic across the waterway of egypt’s suez canal.