Oil Declining as Demand Concerns Outweigh The Disruption of Suez Canal

Oil prices have fallen by more than 2% as the new general isolation measures aimed at combating the Coronavirus have revived concerns about the demand for oil products, even as boats face difficulties to float a stranded container ship that blocks the route of crude oil tankers in the Suez Canal.

Brent crude futures fell $1.33, or 2.1%, to $63.08 a barrel, after jumping 6% overnight.

US West Texas Intermediate crude futures fell $1.40, or 2.3%, to $59.78 a barrel, after rising 5.9% overnight.

Prices fell earlier in the week due to concerns about tightening pandemic restrictions in Europe and delayed distribution of vaccines, which disrupted the growth of demand for fuel, but they reversed course strongly on Wednesday due to news of a ship stranding in the Suez Canal, which is likely to impede the course of ten tankers carrying 13 One million barrels of oil.

The market also received support yesterday, Wednesday, due to data showing improved demand for gasoline in the United States and higher rates of refinery operation, while data also showed the strength of economic activity in the eurozone this month.