Oil retreated as salvage teams partially refloated the giant vessel that has been blocking the Suez Canal, and traders weighed the impact of renewed lockdowns on global demand before an OPEC+ policy meeting.
West Texas Intermediate lost as much as 1.9%, while Brent fell. Crude has been hit by rising volatility in recent sessions, with WTI swinging between gains and losses last week. The Ever Given is now being secured, according to maritime services provider Inchcape, although it isn’t clear when the canal will reopen.
Traders were also tracking the advent on Monday of a significant new contract, with Abu Dhabi kicking off futures for its oil in a bid to establish a new regional benchmark. The move represents a bold challenge to the way nearly one-fifth of the world’s crude is priced.
