Oil prices have witnessed a drop of more than 2% today as news reports have revealed that the vessel blocking the Suez Canal has been almost freed from the shoreline, easing concerns over oil supply.
Brent oil dropped by $1.38, or 2.1%, at $63.19 a barrel while US crude fell $1.48, or 2.4%, to $59.49 a barrel, reported Reuters.
The stuck container ship Ever Given has almost been refloated and will undergo inspection before it is finally moved, the news agency reported citing a source with knowledge of the matter.
Movement has been blocked for hundreds of ships at both ends of the canal for several days.
Oil prices have fluctuated wildly over the last few days as traders and investors weighed in the impact of this vessel blockage, and the wider impact of lockdowns in the wake of Covid-19 infection.
According to OANDA senior market analyst Jeffrey Halley, the market volatility is set to continue.
He added: “Given the volatility last week, Brent looks set to move to the lower end of its $60 to $65 a barrel range.”
He further stated that US oil is ‘likely to drop to the lower side of its $57.50 to $62.50 a barrel weekly range’.
Prices are being supported by expectations that the Organization of the Petroleum Exporting Countries and its allies (OPEC+) will continue to maintain reduced production levels when they meet this week.