Crude oil prices have started to fall in the international market amid fears that the second wave of the corona virus epidemic could reduce consumption. Meanwhile, the Suez Canal has stopped the flow of vessels as the oil container is trapped. Because of this, it is possible to further reduce the price of crude oil.
Why the ship is stuck in the Suez Canal
Due to high tide to the sea, large amounts of silt accumulated in the Suez Canal on Tuesday. It is trapped in a giant vessel 400 meters high. Because of that, the container movement in the Suez Canal has stopped. Due to the high impact of high tide, it has not been removed in time. Moreover, the Suez Canal Administration did not have such a crane for immediate removal.
Perception of the price to be kept for a week
Efforts continued Thursday for the third day to clear the jam from the Suez Canal. Five powerful cranes are installed for this purpose. But because of the high tide, it faces problems. The Suez Canal Administration has stated that it is too early to say anything about when the jam will be removed. It can take up to a week.
The impact of this barrier on global business
12% of the world’s total business is through the Suez Canal. Every day more than 50 large ships pass through this canal. Cantilever accounted for 49.8 percent of its total traffic. Oil and gas tankers account for 28.2%. At the same time, 16.1 percent of bulk ships and 3.8 percent of vehicles carry containers.
How important is cheap crude to India
It imports 80 percent of its total oil needs. Crude oil contributes to one third of India’s total import expenditure. Indian Rupee gains Rs 8000 cr in dollar terms Petrol and diesel prices are also rising in the country. According to experts, inflation will increase by 0.8 per cent, with a 10 per cent increase in petroleum products. In such a situation, cheap crude oil is beneficial to India, but inflationary oil is causing trouble.
Huge traffic jam in the Suez Canal, petrol and diesel prices go up in India
