WTI Crude Oil Weakens as Suez Canal Blockade Resolved

WTI crude oil prices are sliding lower after the Suez Canal's block got cleared and normal shipping movement resumed through the busy route

Written by: Arslan Butt • Tuesday, March 30, 2021 • 1 min read

• Last updated: Tuesday, March 30, 2021

WTI Crude Oil Weakens as Suez Canal Blockade Resolved

Early on Tuesday, WTI crude oil prices are sliding lower after the Suez Canal’s block got cleared and normal shipping movement resumed through the busy route in the previous session, turning markets’ attention back on worries about weakening oil demand across Europe. At the time of writing, WTI crude oil is trading at around $61.69 per barrel.

WTI crude oil ended the previous session around 1% lower on the news and continues its bearishness into early trading today. The container ship Ever Given which ran aground at a narrow stretch within the Suez Canal was finally cleared after several days of operations, reducing the risk of tightening supply after several ships carrying oil were stuck in the resultant blockade.

For now, the focus reverts to the situation in Europe that is battling the third wave of the pandemic and has announced multiple rounds of lockdowns and restrictions across several countries. This is likely to not only delay economic recovery but also keep oil demand depressed in the near term, which is keeping crude oil prices under pressure.

Later this week, traders will turn their attention towards OPEC and its allies that are scheduled to hold their next meeting in Thursday to decide on production levels for the upcoming months. Expectations are that OPEC+ will hold their supply cuts steady into May as well amid the continuing coronavirus crisis around the world.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.