Oil fell on March 29 as a container ship blocking Suez Canal for nearly a week was partially refloated raising hopes the busy waterway would soon be reopened and as fuel demand in Europe stayed weak.
Brent oil was down 29 cents, or 0.5%, at $64.28/bbl by 08:54 GMT. WTI crude in the U.S. fell 55 cents, or 1%, to $60.42/bbl.
“Now that the Suez mini-crisis is being resolved the oil market is left to its own fundamental devices again,” said PVM Oil Associates analyst Tamas Varga.
“Attention will shift back to the stuttering inoculation programs, the seemingly unstoppable rise in infection rates in several parts of the world and the upcoming OPEC meeting on April 1,” he added.
The stranded container ship Ever Given has been partially floated and straightened in the Canal, with further tug operations set to resume when the tide rises later on March 29.
Prices have swung wildly in the last few days as traders and investors tried to weigh the impact of the blockage of a key trade transit point and the broader effect of lockdowns to stop coronavirus infections.
Market volatility is set to continue, said Jeffrey Halley, senior market analyst at OANDA.
“Given the volatility last week, Brent looks set to move to the lower end of its $60 to $65 a barrel range,” he said, while U.S. oil is “likely to drop to the lower side of its $57.50 to $62.50 a barrel weekly range.”
The market is getting some support from expectations that OPEC and its allies will maintain lower output levels when they meet this week.
Renewed lockdowns in Europe to curb a wave of coronavirus infections and the weak fuel demand also pressured prices, although England's stay-at-home lockdown order ended on March 29.
Recommended Reading
NextEra Energy Dials Up Solar as Power Demand Grows
2024-04-23 - NextEra’s renewable energy arm added about 2,765 megawatts to its backlog in first-quarter 2024, marking its second-best quarter for renewables — and the best for solar and storage origination.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.
Enverus: 1Q Upstream Deals Hit $51B, but Consolidation is Slowing
2024-04-23 - Oil and gas dealmaking continued at a high clip in the first quarter, especially in the Permian Basin. But a thinning list of potential takeout targets, and an invigorated Federal Trade Commission, are chilling the red-hot M&A market.
Baker Hughes Awarded Saudi Pipeline Technology Contract
2024-04-23 - Baker Hughes will supply centrifugal compressors for Saudi Arabia’s new pipeline system, which aims to increase gas distribution across the kingdom and reduce carbon emissions
Ithaca Energy to Buy Eni's UK Assets in $938MM North Sea Deal
2024-04-23 - Eni, one of Italy's biggest energy companies, will transfer its U.K. business in exchange for 38.5% of Ithaca's share capital, while the existing Ithaca Energy shareholders will own the remaining 61.5% of the combined group.