Oil hopes Suez Canal blockage will end soon
Oil fell on Monday as the Suez Canal partially reopened, which was blocked by a container ship for about a week. Hopes were raised that the busy waterway would soon be fully opened and that fuel demand in Europe would rise.
Brent oil was down 29 cents, or 0.5%, at $64.28 a barrel by 0854 GMT. WTI crude fell 55 cents, or 1%, to $60.42 a barrel.
The crisis in Suez Canal has been resolved and the oil market is again returning to its basic dynamics. The stranded container ship has partially swam and the Channel will continue its usual flow.
The disruptions in vaccination programs and the unstoppable increase in virus spreading rates in various parts of the world continue.
Prices have fluctuated wildly over the past few days as traders and investors try to weigh the broad impact of a key trading crossing strait and coronavirus infection lockups. It seems that the market volatility will continue.
Given last week's volatility, Brent looks set to go to the lower end of the $ 60.00 to $ 65.00 barrel range, while WTI oil is likely to fall the lows of the range of $ 57.50 to $ 62.50 per barrel.
The market is supported by the expectation that the Organization of Petroleum Exporting Countries and its allies will maintain low production levels.
Lockdowns and weak fuel demand in Europe also keep prices under pressure, but UK lockdowns on the curfew ended on Monday.
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