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Oil Prices Rise Due to Ship Blockage at Suez Canal, Increasing U.S. Demand

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   |    Wednesday,March 24,2021

Oil prices received a boost on Wednesday (3/24) after a ship ran aground in the Suez Canal, according to multiple reports.

WTI rose 6.0% overnight to $61.22 by midday (3/24) and Brent increased 6.7% to $64.41.

The ship in question, the Ever Given, currently remains stuck in the southern part of the canal, despite efforts to release it.

According to a report by Bloomberg, a port agent said it is possible that the issue will be solved by Thursday (3/25).

The incident left the canal blocked to traffic in both directions. The canal is a key passageway used by ships carrying crude to and from several locations, including from the Middle East to European markets as well as from the North Sea to Asian markets.

In addition to the Suez Canal blockage, prices were also bolstered by increasing US oil demand.

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