Wood Mackenzie, global energy, chemicals, renewables, metals and mining research and consultancy group, offered its take on the Suez Canal blockage and its impact on the oil prices.
Key quotes
“There are 16 laden crude and product oil tankers delayed by the Suez Canal blockage.”
“Our data suggests that there have been no cargoes diverted to alternative routes such as around the Cape of Good Hope.”
“Stocks of crude and products are high in the Atlantic basin.”
“A few days of delays in crude or product traveling through the Suez Canal to the west (Europe/Americas) should not have a prolonged impact on the Atlantic basin market.”
“If the blockage is prolonged, oil product trade flows from Europe/Mediterranean to East of Suez will suffer a greater impact, reducing the availability of … fuel oil to Asia.”
“Would be supportive for Asia product prices and widen the West-East arb in the near term.”
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