Oil price falls after Suez Canal opens

Crude Oil Price (June Brent futures) at 16.44 GMT on Monday, March 29, the price of crude oil fell 1% to $63.8 a barrel Brent. The “black gold” market digests the news of the unlocking of the Suez Canal. At 5.30 GMT, the 400-metre container ship Ever Given was removed from the ground, causing traffic to be blocked on one of the world’s busiest trade routes last week. Now market participants are assessing the upcoming OPEC meeting on oil production quotas from May. The alliance’s ministerial monitoring committee is scheduled to meet on 31 March and the alliance is scheduled for 1 April. Meanwhile, international credit rating agency S’P Global Ratings confirmed Saudi Arabia’s long-term rating in foreign and domestic currencies at “A-” levels with a stable outlook. The country’s short-term rating has also been confirmed on the A-2 mark. In 2021, higher oil prices will be partially offset by a decline in oil production in Saudi Arabia. The agency forecasts that the price of Brent crude will reach $60 per barrel in 2021 and 2022 (previously expected at $50 in both years) and fall to $55 in 2023. The SP warns of continued increases in internal or geopolitical instability, which poses a constant threat to Saudi Arabia’s oil sector. The Wall Street Journal noted that Royal Dutch Shell, like many other companies in the sector, has lost its gas purchases. Royal Dutch Shell bought BG Group for $54 billion about five years ago. Exxon Mobil Corp. and Total SE have also invested in gas. In addition, this fuel is now receiving more attention due to methane leaks. Methane has a greater impact on the climate than carbon dioxide, and has recently become one of the targets of environmentalists who put the risk of harm on its use even higher than when burning coal. As a result, potential gas customers are giving up gas in an attempt to switch directly to low-carbon options.