Wood Mackenzie on oil & the Suez blockage

Wood Mackenzie is an energy, chemicals, renewables, metals and mining research and consultancy group 

The firm estimates there are 16 laden crude and product oil tankers delayed by the Suez Canal blockage, and say:

  • “Our data suggests that there have been no cargoes diverted to alternative routes such as around the Cape of Good Hope” 

On oil price impacts:

  • stocks of crude and products are high in the Atlantic basin
  • “A few days of delays in crude or product travelling through the Suez Canal to the west (Europe/Americas) should not have a prolonged impact on the Atlantic basin market

If the blockage is prolonged, oil product trade flows from Europe/Mediterranean to East of Suez will suffer a greater impact, reducing availability of …  fuel oil to Asia

  • would be supportive for Asia product prices and widen the West-East arb in the near term

Source

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