The Suez Canal blockage has triggered the build-up of vessels seeking to transit the canal at each the northern and southern anchorages, in accordance with Wooden Mackenzie
Wooden Mackenzie’s principal analyst Mark Williams mentioned, “In accordance with Wooden Mackenzie VesselTracker, the most important influence is on container delivery, however we estimate that there are a complete of 16 laden crude and product oil tankers that are anticipated to transit the canal delayed by the incident, amounting to 870Kt of crude and 670kt of fresh merchandise.
“These ships are at the moment within the canal itself or ready at both the North entrance to the Suez Canal (Port Mentioned Anchorage and Nice Bitter Lake Anchorage) or on the Southern Suez Anchorage. There are a number of vessels that are situated to the south of the canal entrance which we consider are scheduled to discharge at numerous southern Suez ports.”
Wooden Mackenzie vice-president Ann-Louise Hittle added, “Oil costs rose by about US$2 per barrel on the information of the blockage, however shares of each crude and merchandise are excessive within the Atlantic basin. Just a few days of delays in crude or product travelling by means of the Suez Canal to the west (Europe/Americas) mustn’t have a chronic influence on the Atlantic basin market.
“After the canal reopens, the crude market will shift focus in the direction of the 1 April OPEC+ assembly to find out manufacturing ranges for Could.”
Williams continued, “If the blockage is extended, given the weak spot in European demand for center distillates and low refinery utilisation charges, oil product commerce flows from Europe/Mediterranean to East of Suez will undergo a higher influence, lowering availability of naphtha, petrochemical feedstocks and gas oil to Asia. This may be supportive for Asia product costs and widen the West-East arb within the close to time period.
“The Sumed pipeline between the Pink Sea and the Mediterranean is used to divert Center East crude oil flows to Europe across the Suez Canal, so we count on minimal influence on such flows. Russian Black Sea crude exports past the Mediterranean will likely be restricted by the blockage of the Suez Canal, so will have to be processed inside by Mediterranean refiners.”