Oil rebounded, following a sell-off on Tuesday, as investors assessed the impact of a blockage in the Suez Canal and European manufacturing data beat expectations. Futures in New York added as much as 3.4% after a ship ran aground, giving the market a reprieve after prices sank to the lowest level since early February. Despite efforts to move the vessel, it could block the route for days, according to people familiar with the situation.
Crude was also bolstered by positive economic data as Europe posted a record increase in factory output. That masked fresh concerns across the region about surging coronavirus infections.
Oil prices have sunk about 12% in less than two weeks amid softening physical demand and the unwinding of long positions. The prompt timespread for Brent crude has also flipped into a bearish structure for the first time since January. Oil’s recent plunge may put pressure on OPEC+ to do more to try and stem the slide, with the group meeting next week to decide on production policy for May.
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