Oil prices decline as the ship blocking Suez Canal starts moving

Gulf Today Report

Oil dropped beyond 2% on Monday after it was announced that salvage crews have been able to move the giant container ship blocking the Suez Canal.

Brent oil was down $1.38, or 2.1%, at $63.19 a barrel by 05:11 GMT while US crude fell 1.48 cents, or 2.4%, to $59.49 a barrel.

The stranded container ship Ever Given has almost been completely floated and will be inspected before it is moved, a source said.

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Oil prices have dangled in the last few days following the impact of the Suez Canal blockage and the effect of new coronavirus restrictions.

"Given the volatility last week, Brent looks set to move to the lower end of its $60.00 to $65.00 a barrel range," Jeffrey Halley, senior market analyst at OANDA said, while US oil is "likely to drop to the lower side of its $57.50 to $62.50 a barrel weekly range."

Prices are getting some support from expectations that the Organization of the Petroleum Exporting Countries and its allies will maintain lower output levels when they meet this week.