Oil rises as Suez Canal ship runs aground, demand fears weigh | Reuters
Oil rose more than 2% 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.
The giant container ship that has been blocking the Suez Canal for more than a day has been partially refloated and traffic along the fastest shipping route from Europe to Asia is expected to resume soon, port agent GAC said on Wednesday.
“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 $1.48, or 2.4%, to $62.27 a barrel by 1223 GMT, after tumbling 5.9% the previous day. West Texas Intermediate (WTI) climbed $1.32, or 2.3%, to $59.08, having lost 6.2% on Tuesday.
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