Oil prices decreased at the beginning of the session because of news that the super-weighted container ship Ever Given was released from being stuck on the Suez Canal. As a result, the Suez Canal - one of the most important sea lanes for world trade, including the shipping of crude - reopened after nearly a week of congestion.
At closing, Brent oil futures prices in London increased by $ 0.41 / barrel, reaching $ 64.98 / barrel. WTI crude oil futures on New York market rose 0.59 USD / barrel, closing at 61.56 USD / barrel.
"The market is turning its attention from the Suez Canal to the upcoming OPEC + meeting. There are strong signals that OPEC + continues to extend its output cut," said Phil Flynn, analyst at Price Futures Group. stated.
The source informed Reuters that Russia supported to stabilize oil production in May of OPEC +, the alliance between the Organization of the Petroleum Exporting Countries (OPEC) and its non-bloc allies including Russia. In addition, Russia wants to slightly increase its oil production to meet the increasing domestic demand due to seasonal factors.
The source said that, with the above viewpoint of Russia, in the meeting on April 1, OPEC + is expected to maintain the level, not loosen output.
In the first four weeks of March, Russia produced 10.22 million barrels of oil and condensate per day, from 10.1 million barrels a day in February, according to Reuters data.
WTI oil price movements futures in New York market since the beginning of the year until now. Unit: USD / barrel - Source: Trading View.
The Ever Given was brought back to the correct position and moved back on the Suez Canal. However, the disruption that the incident has caused to the global shipping industry can take weeks or even months to fix, the shipping lines said.
"The market will soon realize that, even if the Ever Given ship is out of the Suez Canal within the next few days, the effects of the congestion will spread," said oil market analyst Louise dickson said.
The increase in oil prices is limited because many European countries have to tighten restrictions against the Covid-19 pandemic amid an increasing number of new infections, and weak demand for oil in this region.
