International Oil Prices Surge Due to Suez Canal Navigation Halt... WTI Up 5.9%

20 Tankers Grounded Due to Container Ship Stranding
WTI Nearly Recovers Previous Day's Losses... Returns to $60 Level

[Image source=EPA Yonhap News]

[Asia Economy Reporter Lee Hyun-woo] International oil prices surged nearly 6% as more than 20 oil tankers bound for Asia and Europe were stranded due to a major container ship grounding accident in the Suez Canal. It is known that about 10% of the international maritime crude oil transport volume passes through the Suez Canal, and if the accident prolongs, it is expected to continue affecting international oil prices.

According to foreign media such as CNBC on the 24th (local time), May delivery West Texas Intermediate (WTI) crude oil on the New York Mercantile Exchange (NYMEX) closed at $61.18 per barrel, up $3.42 (5.9%) from the previous session. WTI prices, which had temporarily dropped to the $57 level due to concerns over declining oil demand from Europe the previous day, returned to the $60 level in just one day. On the London ICE Futures Exchange, May Brent crude oil traded sharply up 5.5% ($3.37) at $64.12 per barrel.

International oil prices surged following news that a 220,000-ton ultra-large container ship ran aground on a sandbar due to strong winds in the Suez Canal, which connects the Mediterranean Sea and the Red Sea, causing transportation through the canal to halt. This accident interrupted the passage of oil tankers moving from the Gulf region to Asia and Europe. Currently, about 20 oil tankers are reportedly waiting in the Red Sea and the Mediterranean Sea for the accident to be resolved.

Egyptian authorities are attempting to refloat the grounded container ship using tugboats and heavy equipment, but a sandstorm with wind speeds of 50 meters per second is raging, and the ship's heavy weight is making the salvage operation difficult.

Since about 10% of international maritime crude oil transport passes through the Suez Canal, there are concerns that if the accident prolongs, it could continuously impact international oil prices.

Amid growing anxiety, the price of gold, a safe-haven asset, also rose. On the same day, April delivery gold on NYMEX closed at $1,733.20 per ounce, up $8.10 (0.5%).

This content was produced with the assistance of AI translation services.