Oil surges as stocks trade mixed amid latest Covid-19 wave

Oil prices surged Wednesday following the blockage of the Suez canal, while stocks were mixed as governments struggle to contain the latest wave of the coronavirus.

Crude futures surged six per cent as traders assessed the likely impact from the grounding of a giant container ship in one of the world’s busiest shipping routes.

Dozens of ships were blocked by the Panama-flagged ship, but historic sections of the canal were reopened in an effort to ease the traffic jam.

“The energy market has largely priced in the short-term crude demand hit,” said Ed Moya of Oanda.

Meanwhile, Wall Street stocks suffered another down day, despite strength in petroleum-linked equities. The tech-rich Nasdaq slumped 2.0 per cent behind drops in Apple, Facebook and other tech giants.