Oil plunges as Suez Canal container ship begins to move

Oil prices dropped over 2% on Monday after news that salvage crews have successfully moved the giant container ship that was stuck in the Suez Canal and has blocked global trade passage for almost a week.

Brent oil fell 2.1%, or $1.38, at $63.19 per barrel. U.S. West Texas Intermediate lost 2.4%, or $1.48, at $59.49 per barrel.

The stranded container ship, Evergreen has almost completely floated and will be under inspection before being moved.

Hundreds of container ships, oil-laden tankers, and bulk carriers remain backed up at both ends of the Suez Canal. News of the ship’s movement instantly drove prices lower after slightly sliding in early trade.

Oil prices have swung in recent sessions as traders weighed the impact of the blockage and the wider effects of new coronavirus restrictions.

Prices have been supported by hopes that OPEC and its allies will carry out existing production cuts to May.