Suez canal blockage sends oil prices rebounding after sell-off

The grounding of a container ship in the vital waterway has blocked traffic, raising fears of crude supply disruptions.

Oil climbed as investors assessed the impact on global crude flows after a ship ran aground and blocked the Suez Canal, following a sell-off that’s driven prices to the lowest level since early February. Futures in New York added 1% after news of the grounding, giving the market a reprieve amid mounting signs of weakness. Oil prices slumped below $60 a barrel on Tuesday and have tumbled more than 12% in less than two weeks on a series of factors including softening physical demand and the unwinding of long positions. The prompt timespread for global Brent crude has also flipped into a bearish structure for the first time since January. Adding to negative sentiment are indications U.S. crude inventories continue to swell. The American Petroleum Institute reported stockpiles rose by almost 3 million barrels last week, according to people familiar with the data.