On Wednesday, both US and UK crude futures’ prices had pared almost all of their losses stomached a day earlier, as both oil contracts soared as much as 6 per cent after a massive 400-metre ship, one of the world’s largest, had run aground in the Suez Canal and blocked the fastest route to transport oil to and from Europe and Asia over likelihoods that the incident might occlude the Canal for days, eventually leading to a supply-crunch in global crude oil market.
In point of fact, the most recent occlusion of Suez Canal was occurred in 2017, when a Japanese container ship had blocked the high-traffic sea route, however, it took less than two hours to put the cargo ship back into the water, nonetheless, back in the 2016s, away from the Canal, a more serious incident happened in the German port of Hamburg, where a giant CSCL Indian Ocean ship kept a channel 0occluded more than five days, resulting millions in claims and liabilities for the owner and insurers of the ship.
On top of the Suez Canal incident, both Brent and US crude received a big boost in the day’s commodity market after US EIA (Energy Information Administration) data had revealed a bounce back in refining activity, suggesting a likely drop in US crude stockpiles following a cold snap that tattered Texas activities in February.
Oil gains as much as 6% after Taiwanese cargo ship blocks Suez Canal
Citing statistics, in the day’s commodity market closure, UK crude oil contracts settled 6 per cent higher to $64.41 per barrel after falling as much as 5.9 per cent on yesterday, while US West Texas Intermediate crude oil contracts climbed 5.9 per cent after losing out more than 6 per cent a day earlier.
Meanwhile, referring to the unprecedented uncertainties that could be bolted out of the blue and start catalysing the black gold futures’ prices, an analyst at Mizuho in New York, Bob Yawger said, “It’s one of those wild cards that is unique to the crude oil industry.
Once you think you have everything nailed down, I can guarantee one thing: You don’t. ”