Posted on 03/24/2021 6:42:57 PM PDT by Aquamarine
WASHINGTON (DTN) -- Crude and refined products futures on the New York Mercantile Exchange and Brent crude on the Intercontinental Exchange reversed higher in early trade Wednesday, with the international benchmark trading as much as 2% higher amid reports a massive Evergreen container ship ran aground in the Suez Canal, choking off passage through one of the world's busiest arteries for oil transit.
The 200,000-tonne vessel en route from the Red Sea to the Mediterranean suffered an extensive blackout early Wednesday, causing the ship to turn sideways in the middle of the critical corridor for global oil trade, blocking both northbound and southbound channels.
The Suez Canal, which connects the Mediterranean Sea and Red Sea, transits over 18,000 ships a year, with a large chuck of those vessels oil tankers heading to Europe from the Persian Gulf region. Traders think there are few alternative sources and shipping routes that could be used to transit oil, but if the blockage lasts for more than a few days, it could impact global supplies for a longer duration.
The disruption in the Suez Canal is seen as an isolated incident but nonetheless prompted short-covering following Tuesday's sell-off that sent oil prices down more than 6%. The rally in the oil complex, with an uptrend that began in November and accelerated in the first quarter through early March was reversed over the past 10 days amid growing demand concerns with more aggressive lockdown measures being taken in Europe to combat a third wave of COVID-19 infections. Further restrictions in the European Union could dent global oil demand by as much as 1 million barrels per day (bpd), according to estimates from Rystad Energy.
(Excerpt) Read more at dtnpf.com ...
Still stuck. https://www.vesselfinder.com/?imo=9811000
Oh gee....
Such a shame....
Not being self sufficient and all...
This is madness.....
When will we learn????
If only someone could lead us....
We are doomed..........
We must find a way...........
Go ahead liberals....
Bitch about oil prices....
Up yours!
“...choking off passage through one of the world’s busiest arteries for oil transit.”
Some oil industry guy this morning said the canal was not that heavily used by oil tankers and this wouldn’t be a big problem for worldwide supply.
It’s bound to give terrorists ideas though. It’s too easy.
4 years of never caring what the hell happened with foreign oil production was nice.
Get ready to hear about the need to sacrifice American boys to keep “our oil lifeline”, the Strait of Hormuz, open. The GD anti American Uniparty war mongers’ delight.
There haven’t been the traditional and customary Springtime Oil Refinery Fires this year; this is a novel solution to that problem. Must be the COVID.
Just as planned....
Move along.....
Most of those ships coming out of the Persian Gulf are transporting oil. Germany, I mean the European Union are going to suffer the most from this situation.
Not just blocking trade but also blocking military vessels. Maybe they should send Egyptian petty thieves to lighten the load.
“Not just blocking trade but also blocking military vessels. Maybe they should send Egyptian petty thieves to lighten the load.”
This is an amazingly good idea and it should be explored.
I suggest that they pull up the anchor.
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