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Reuters
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Oil prices fell today, Tuesday, as shipping resumed in the Suez Canal after days of stoppage by a gigantic stranded ship.
Market attention has now shifted to this week’s OPEC + meeting, where an extension of supply restrictions is expected to be discussed amid new closures to contain the spread of the coronavirus.
At 6:51 am GMT, Brent crude fell 15 cents to $ 64.83 per barrel, while U.S. crude fell 12 cents to $ 61.44 per barrel.
Navigation resumed in the Suez Canal last night, Monday, after the flotation of the huge container ship “Ever Giffen”, which blocked the waterway for nearly a week, causing congestion for many of ships waiting to cross the shipping lane.
As fears of the current supply shortage have subsided, market attention has turned to next Thursday’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies in Vienna, where the we call the group “OPEC +”.
“Saudi Arabia’s decision to prevent an increase in production will result in an exceptional scarcity in the oil market due to the withdrawal of inventories,” said Avtar Sandhu, director of commodities at Philip Futures in Singapore.
OPEC + is discussing maintaining production restrictions, which have held millions of barrels on the market daily, to support prices, a strategy that has largely been successful in recent months.
Source: Reuters
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