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Oil prices drop after the ship in Suez Canal is partially freed

The prices of the oil are dropping after the Ever Given container ship was partially freed in the Suez Canal. This gives rise that a crucial lane of global trade can soon reopen. The global benchmark Futures for Brent crude was last down 2% to $63.28 a barrel. The  WTI Crude prices were down 1.62 percent at $60.52. Almost 15% of world shipping goes through the Suez Canal, which cuts through Egypt from the Mediterranean to the Red Sea.

The Authority of the Suez Canal said that the ship blocking the Egyptian canal had been mostly dislodged and that authorities planned to fully refloat. The 224,000-ton vessel had been stuck for nearly a week. Maritime services provider Inchcape tweeted that the Ever Given had been refloated in the early morning means one of the most important routes for global trade and crude shipments can reopen.

Oil prices drop after the ship in Suez Canal is partially freedThe Ever Given, a big container ship which is as long as the Empire State Building is tall, ran aground in the Egyptian canal on March 23. A massive effort to salvage the ship has focused on clearing the sand from below the front and rear of the ship, before pulling the ship with tugboats. The Canal is one of the world’s most vital trade arteries.

One of the analysts at Commerzbank said that the blockage threatened to cause oil to become more expensive for consumers due to higher tanker rates. Global shipping was in chaos even before the Suez blockage. Osama Rabie, head authority said that Ever given ship began to float after responding to the pulling maneuvers.

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