Oil Prices Have Softened Due to Suez Canal Blockage Clearance

Stock markets in Asia heaved a sigh of relief and crude oil prices fell as the vessel blocking the Suez Canal was freed.

This will clear the canal and allow movement on the busiest waterway in the world.

Crude prices fell after rising 4 per cent over the last few days as the blockage was causing $ 9 billion of trade loss every day.

The Suez Canal accounts for 12 per cent of global trade. Oil prices have softened due to the recent lockdowns in Europe also.

Brent crude fell 90 cents to $63.67 a barrel, while the US crude lost $1.03 to $59.94 per barrel.

The Suez Canal accounts for about 30 per cent of global container ship traffic each day. The blockade has hurt supplies of oil and affected shipping and container rates, leading to a rise in the cost of goods. Syria has had to resort to rationing.

The 'Ever Given' vessel was wedged in the canal since Tuesday, BBC said. More than 300 ships were stuck on either side of the blockage. Some vessels have had to reroute via Africa.

The 193 km (120-mile) Suez Canal connects the Mediterranean Sea to the Red Sea and provides the shortest sea link between Asia and Europe.