Crude oil prices have dipped as traffic resumed on the Suez Canal following several days of blockage and the market shifts its focus on the upcoming OPEC+ meeting on supply curb policy.
Brent crude fell by $0.15, or 0.2%, to reach $64.83 a barrel while US oil dipped $0.1 to reach $61.55 a barrel, reported Reuters.
With the refloating of the Ever Given container carrier that was blocked for almost a week, ships have resumed cruising through the Suez Canal, easing concerns over oil supply.
Investors are now focusing on the meeting scheduled by the Organization of the Petroleum Exporting Countries (OPEC) and allies, including Russia, collectively known as OPEC+, on 1 April.
The meeting would involve discussion over the possibility of maintaining supply cuts and support prices by keeping millions of barrels a day off the market.
Meanwhile, Saudi Arabia is considering extending voluntary output cuts to support oil prices amid increasing lockdowns to contain the Covid-19 infection, according to sources.
Singapore-based OCBC Bank economist Howie Lee was cited by Reuters as saying: “Market expectations for no change to output are largely priced in.”
Lee said that the surging coronavirus cases in European countries ‘has put a brake on oil’s resurgence’.
As third wave of the Covid-19 infections is increasing alarmingly in Europe, France’s Finance Minister Bruno Le Maire said ‘all options are on the table’ to help ensure safety of the public, sources said.