Oil rushed down this morning amid news that container ship Ever Given, which ran aground last week, has been partially freed.

The rescue operation began yesterday and achieved success this morning, according to maritime service provider Inchcape Shipping. The 400-meter container ship was moved after about 27,000 cubic meters of sand were extracted from it. Currently, tugs are trying to adjust it in a position in which it could resume movement.

Of course, this event set off an immediate reaction in the oil market. World oil prices dropped by 2%. To be more specific, June futures for the Brent slipped to $ 63.13, while the May contracts declined to $ 63.53. As for WTI, price fell by more than 2%, trading at $ 59.64 per barrel.

In short, the price increase seen last week ended immediately. If you can recall, June futures for Brent rose by 4.2% and hit $ 64.5 last Friday, while May futures for WTI jumped by 4.1% and hit almost $ 61 per barrel.

Obviously, the oil market is easily influenced by many factors. One of which is the epidemiological situation in the world. More specifically, it is being pressured to varying degrees by increasing COVID-19 incidents and extension of economic lockdowns. This tense situation, followed by the unfortunate event in the Suez Canal, creates uncertainty around the oil market.

That being said, many analysts believe that price will continue to decrease, especially since in the last 2 weeks alone, it has already fallen by an average of 8-9%.

But they also hope that the OPEC meeting this week will help solve the issue on demand, even if just partially.

Vandana Hari, founder and CEO of Vanda Insights, believes that the coalition will not take the risk of putting more supply in the market. She also said that OPEC will not soften oil quotas. Experts from Goldman Sachs believe in this as well, saying that the scenario will only change if restrictions have been lifted already.

The material has been provided by InstaForex Company –

Leave your vote

🚀If you want to get a Forex Robot Coded as per your trading strategy but are unable to do so because of the high price for the Robot then you can take advantage of the CROWD FUNDING campaigns feature. ✔ These are some crowd funding campaigns for Forex Robots, which when completed can provide the very same Forex Robot to the participants at an average price of $5-$10 per participant. ✔ You either participate in one of the already listed campaigns or send us your Forex strategy : Submit Crowd Funding Campaign , for which you would like the Forex Robot to be coded. A Crowd Funding Campaign would then be started for the same . ✔ All you have to do later on is to share the campaign online with your friends to encourage more people to participate in the campaign.

As a result, each participant can get that Forex robot for just a campaign contribution of $5 (which is the minimum). Participants can back the campaign by anything above or equal to $5 to reach the funding goal to close the campaign.