The drama in the Suez Canal adds to the messy picture
As if the view on demand conditions easing and questions being raised on the supposed ‘supercycle’ on oil weren’t enough, the Suez Canal situation just creates more complications for traders to price in at the moment – at least in the short-term.
The disruption may be supportive of prices but the situation is likely to be resolved in the coming days and that should see normal service resume (for global trade too).
After falling 6% two days ago, oil rebounded by the same amount yesterday but is trading back 2% lower on the day to keep just under $60 currently.
For now, it looks like the top is in for oil but whether or not it can sustain any major decline below the support levels that are being tested lately may rest on the hands of the upcoming OPEC+ meeting in April.