Oil market rebounds on Suez ship warning

World oil prices rebounded Monday, reversing earlier losses after a warning that the Suez Canal container ship blockage remains a challenging situation.

The head of a Dutch salvage firm helping refloat a huge container ship stuck in the Suez Canal warned that “the challenge is still ahead” despite some success in moving it as the bow remains stuck.

Traders remain on tenterhooks because the canal is one of the most important routes for global trade and crude shipments.

“The good news is that the stern is free but in our view that was the easier part. The challenge is still ahead because you really have to slide the ship, with the weight it is carrying,” said Peter Berdowski, chief executive of Boskalis, the parent company of salvage firm Smit Salvage.