May 18, 2022

source: Dreamstime

Oil Jumps 4% On Fears Suez Canal Blockage May Last Weeks

Oil prices rose more than 4% on Friday on worries global supplies of crude and refined products could be disrupted for weeks as workers try to dislodge a giant container ship blocking the Suez Canal.

It was a rebound from a sharp decline the previous session on concerns that fresh coronavirus lockdowns in Europe would hurt demand.

Brent crude rose $2.62, or 4.2%, to settle at $64.57 a barrel, after dropping 3.8% on Thursday. U.S. West Texas Intermediate (WTI) crude gained $2.41, or 4.1%, to settle at $60.97 a barrel, having tumbled 4.3% a day earlier.

Brent rose 0.1% over the last week, while WTI dropped 0.7%, its third weekly loss.

The Suez Canal stepped up efforts on Friday to free the stuck mega vessel after an earlier attempt failed. Efforts to free it may take weeks, with possible complications from unstable weather.