The Suez Canal and the Importance for Crude Oil Prices

(MENAFN - DailyFX) The Suez Canal and Oil Analysis - Talking Points: What is the Suez Canal? Why is the Suez Canal Important? Impact of Current Blockade WHAT IS THE SUEZ CANAL?The Suez Canal is among the top chokepoints for global oil trade, other key waterways include the Strait of Hormuz . The Suez Canal is the quickest sea route between Asia and Europe, which connects the Reds Sea and Mediterranean sea. Source: BBGWHY IS THE SUEZ CANAL IMPORTANT?According to the EIA, roughly 9% of total seaborne oil passes through the waterway, while Vortexa notes that the top 3 exporters of crude through the Suez Canal is Russia (546kbpd), Saudi Arabia (410kbpd) and Iraq (400kbpd), with the top 3 importers being India (490kbpd), China (420kbpd), and South Korea (380kbpd).IMPACT OF CURRENT BLOCKADE A skyscraper-sized container ship, Even Given (400 meters long), has become wedged sideways in the narrowest path of the Suez Canal, subsequently blocking the pathway for other vessels and tankers to pass. As such, Vortexa has estimated that as many as 10 tankers carrying 13mbpd could be affected by the traffic disruption, which in turn has provided modest support for oil prices in the face of the recent bearish trend. BRENT CRUDE OIL PRICE CHART: DAILY TIME FRAME Source: RefinitivFurther reading to improve your oil trading: Read out in-depth guide to trading crude oil 8 Surprising Crude Oil Facts Every Trader Should Know WTI vs Brent: Top 5 Differences Between WTI and Brent Crude Oil MENAFN25032021000076011015ID1101809947