Oil prices gain on fears Suez Canal blockage may last weeks

Gulf Today Report 

Oil prices rose on Friday due to worries that it might take weeks before the container ship blocking the Suez Canal can be removed, thereby affecting supplies of crude and refined products.

Brent crude was higher by 54 cents, or 0.9%, at $62.49 a barrel by 04:32 GMT while US West Texas Intermediate (WTI) crude was up 65 cents, or 1.1%, at $59.21 a barrel.

The trapped container ship is blocking traffic in the Suez Canal, one of the world's busiest shipping channels for oil and refined fuels, grain and other trade between Asia and Europe. 

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All ships going through the canal have been stopped from entering on Thursday while they try to dislodge the ship.

Although a salvage company said, the vessel may take weeks.

Expectations that the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, will likely maintain their lower production also supported prices, Nissan Securities researcher Yasushi Osada said.

OPEC+ is scheduled for a meeting on April 1 to decide on May supplies. According to sources, it is expected that OPEC+ would stick to current low levels as demand declines in Europe due to new lockdowns.