Ship Blocking the Suez Canal is Freed
March 30, 2021
The ship that was blocking the Suez Canal if finally, free and officials say it will take a few days to clear the back log of ships. It will take more time for supplies chains to get sorted out. The longer term challenge will be to figure out who pays all the bills.
Saudi Arabia appears ready to extend the OPEC+ production cuts as there are still concerns about demand recovery due to COVID. Saudi Arabia is also willing to extend its voluntary cuts in its efforts to support prices.
The opening up of the Suez Canal is offering prices some downside this morning and prices are also being pressured lower by reports that China is getting close to 1 million barrels of oil from Iran. The increased exports from Iran despite US sanction is a headwind for prices.