Oil prices slide on fresh Covid-19 curbs in Europe, stranded ship

The Suez Canal Authority said on Thursday it had suspended traffic temporarily while eight tugs work to free the vessel
Oil prices fell on Thursday as a new round of coronavirus restrictions in Europe revived worries about demand, even as tug boats struggled to move a stranded container ship blocking crude oil carriers in the Suez Canal.

Brent crude slid more than 2 per cent, to $61.64 a barrel at 7.57 pm (IST). US West Texas Intermediate (WTI) crude dropped by $1.86, or 3 per cent, to $59.32 a barrel as of 7.10 pm.

Both contracts jumped about 6 per cent on Wednesday after a ship ran aground in the Suez Canal, one of the world’s most important oil shipping routes. 

The Suez Canal Authority said on Thursday it had suspended traffic temporarily while eight tugs work to free the vessel.

The impact of the Suez Canal blockade on oil prices is also limited as the destination of most oil tankers is Europe, but European demand is currently weak due to a new round of lockdowns. A strong dollar also weighed on oil prices. It hit a new four-month high against the euro as the US pandemic response continued to outpace Europe's.



Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel