Oil up as Suez Canal ship runs aground, stemming market’s recent weakness
Oil rose more than 6% on Wednesday after a ship ran aground in the Suez Canal, and worries that the incident could tie up crude shipments gave prices a boost after a slide over the last week.
The crude benchmarks, U.S. crude and London-based Brent, added to gains after U.S. inventory figures showed a further rebound in refining activity, suggesting U.S. refiners are mostly recovered from the cold snap that slammed Texas in February.
Brent crude gained $3.69, or 6%, to trade at $64.48 a barrel, after tumbling 5.9% the previous day. West Texas Intermediate (WTI) climbed $3.53, or 6.1%, to $61.29, having lost 6.2% on Tuesday.
The gains appeared to stabilize the market that had slumped after early this month, when oil prices hit their highest levels this year earlier on expectations for demand recovery that have since been dashed as European nations re-entered lockdowns to halt another wave of the pandemic.
Reference: CNBC
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