Oil prices rebound on fears Suez Canal blockage may last weeks
Oil prices bounced back on Friday from a plunge a day earlier on concerns that a large container ship that ran aground in the Suez Canal may block the vital shipping lane for weeks, squeezing supply.
Prices, however, were still headed for a third consecutive weekly loss.
Brent crude settled 4.23% higher at $64.57 per barrel, after dropping 3.8% on Thursday.
U.S. West Texas Intermediate (WTI) crude advanced 4.12% to settle at $60.97 per barrel, having tumbled 4.3% a day earlier.
Both benchmarks were on track for a weekly loss of more than 3%, following a more than 6% decline last week.
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.
Officials stopped all ships entering the canal on Thursday, and a salvage company said the vessel may take weeks to free.
Reference: CNBC
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