Despite the displacement of the Suez ship, oil prices are on the rise

Brent oil futures rose to $ 64.58 per barrel in recent trading.

It comes after oil prices fell more than 2% on Monday after news from the Suez Canal that rescue teams were successful in moving the giant container ship that has been blocking the vital global trade corridor for nearly ‘a week, although it is not known when the canal will reopen for movement.

In turn, financial agency Fitch said the closure of the Suez Canal was a great loss, even for global reinsurers.

Brent fell $ 1.38, or 2.1%, to $ 63.19 a barrel at 5:11 a.m. GMT. US crude fell $ 1.48, or 2.4%, to $ 59.49 per barrel.

Hundreds of other oil-laden container ships, freighters and tankers are still crammed at both ends of the canal, but news of the ship’s movement pushed oil prices down immediately after dropping slightly in the morning.

Oil prices have fluctuated considerably over the past few days as traders and investors tried to balance the impact of closing a major transit point for trade and the wider impact of closures aimed at contain coronavirus infections.

Geoffrey Haley, chief market analyst at Oanda, told “Reuters” that market volatility “will continue”.

He also said: “Given the volatility of the past week, it looks like Brent will move to the lowest point of its $ 60- $ 65 a barrel range,” adding that U.S. crude “will likely fall to the bottom. lowest point of its range. weekly range, which varies between $ 57.5 and $ 62.5. “Barrel”.

Prices are somewhat supported by expectations that the Organization of the Petroleum Exporting Countries and its allies will continue to cut production levels when they meet this week.

The Suez Canal crisis caused a large build-up of ships on both sides of the vital waterway and prompted some ships to avoid congestion by taking the longest and most expensive route around Africa.

Oil tanker prices have increased, driving up the cost of transporting crude around the world and dramatically increasing the price of oil.

On the other hand, most Asian stocks rose on Monday, after a record close on Wall Street, while US stock futures fell as traders valued a wave of combined trades worth $ 20 billion. of dollars.

The dollar gauge rose and the 10-year US Treasury yield fell.

The strength of the recovery, driven by the expansion of global immunization campaigns, and the risk of inflation are factors supporting the markets.

Later this week, US President Joe Biden plans to unveil an additional stimulus package with an infrastructure slant.

The U.S.-China relationship is also at the center of concern, after a report that Washington was not prepared to increase tariffs on Chinese imports in the near future, but it could be open to questions. trade negotiations.