Suez Canal Blockade Boosts Crude Oil Price Almost 6%
The change in decision by German Chancellor Angela Merkel, who amid criticism renounced "drastic lockdown" over Easter weekend also "boosted oil prices," said Robert Yawger of Mizuho USA.
A barrel of WTI in New York for delivery in May gained 5.92% to 61.18 dollars over Tuesday's close.
RELATED: At least 15 ships are blocked by a Panamanian-flagged vessel crossed in Suez Canal
Meanwhile, a barrel of Brent from the North Sea for delivery in May gained 5.95% to 64.41 dollars in London.
Oil moved in line with reports on the duration of the Suez Canal blockade, Oanda analyst Edward Moya explained.
Tugboats and rescue units were attempting to unload a gigantic 400-meter-long container ship, the Panama-flagged "Ever Given", in the Suez Canal on Wednesday. The incident affected one of the busiest trade routes in the world.
Oil also gained ground after the publication of the weekly report on reserves in the United States, which showed a modest rise in crude stocks, according to the US Energy Information Agency (EIA).
The report indicates that stocks rose 1.9 million barrels (mb) to 502.7 mb as of March 19.
