Oil rises as Suez Canal ship runs aground, European lockdowns weigh | Reuters

Oil rises as Suez Canal ship runs aground, European lockdowns weigh | Reuters

Oil rose more than 1% on Wednesday after a ship ran aground in the Suez Canal raising supply concerns, although fears of a slow recovery in demand due to European lockdowns limited gains.

Ships in the Suez Canal were being diverted to an older channel on Wednesday after a large container ship ran aground, blocking vessels passing through one of the world’s most important waterways.

“Price support is coming courtesy of a transport blockage,” said Stephen Brennock of oil broker PVM. “Yet market sentiment will likely struggle to shake off its newfound bearish trend.”

Brent crude rose $1.19, or 2%, to $61.98 a barrel by 0903 GMT, after tumbling 5.9% the previous day. West Texas Intermediate (WTI) also climbed $1.19, or 2.1%, to $58.95, having lost 6.2% on Tuesday.