Oil Prices Drop With Partial Refloating Of Megaship Blocking Suez Canal

As investors focus on the economic recovery, while oil prices dropped on news that a cargo ship blocking the Suez Canal had been refloated, Asian markets mostly rose Monday, extending last week’s positive finish and tracking a record-breaking lead from Wall Street.

Egypt’s Suez Canal resumed Monday after a giant container ship which had been blocking the busy waterway for almost a week was refloated.

The 400-metre long Ever Given became jammed diagonally across a southern section of the canal in high winds early last Tuesday, halting traffic on the shortest shipping route between Europe and Asia.

A below-forecast reading on US prices on Friday provided support as it eased fears that inflation caused by an expected strong global rebound will force central banks to wind back their ultra-loose monetary policies or hike interest rates.

The week ahead will provide plenty for traders to get their teeth into including the release of key US jobs data for March and figures on manufacturing activity around the world.

US President Joe Biden is also tipped to soon unveil the next leg of his economic recovery plan targeting infrastructure, which some suggest could come in around $3 trillion. That comes just as his recently passed $1.9 trillion stimulus begins to kick in.