This is the most extended ever accidental closure of the Suez Canal. The vital link between the Middle East and Asia to Europe and North America. However, the oil markets are not blinking. Ever Given, the container ship is 440 meters long, 59 meters wide, and was riding at a depth of 15.7 meters in the water. It is stuck fast, and its bow wedged into the canal’s eastern bank, while the stern is in the western bank.
The oil market has muted its reaction and justifiable so. On Wednesday, when the problem became fully apparent first, crude did recover some of the previous day’s loss. Although, the prices have begun to weaken again. The market has come to terms with yet another slowdown in recovery as the pandemic surges again in various parts of the country.
The market is coming to terms with the renewed lockdowns in France and Italy have dampened European oil consumption’s immediate outlook. The U.K. politicians have warned their citizens to consider flying off to southern Europe for their holidays. This was done with the hope of undermining a rebound in air travel. All kinds of problems can be created due to a lengthy closure of Suez Canal for all sorts of trade.