The price of crude oil, which went down yesterday,
rose again today, perhaps due to the fact that the yesterday’s optimism about a
quick solution for getting the stricken tanker on track in the Suez Canal was
grossly misplaced.
That means the global oil supply are going to be
affected in the short term, as Egyptian authorities implied that getting the
traffic back along the narrow waterway could take weeks.
Of course, the tankers that have piled up carry
other goods to the West as well and the ripple effect will be felt beyond crude
oil markets, unless the salvage operations show a bit more dynamism than what
we witnessed in the last two days.
The slow pace of rescue operations has triggered off
a wave of online-memes, which could potentially hurt those who are in charge of
the task as much as the tidal wave did to the stricken tanker.
The presence of a medium-sized digger in the shadows
of a super tanker, for example, more or less, reminds us of the proverbial
squirrel that used to wet its tail with seawater, only to wag it on the shores
in the hope of emptying the ocean.
The blockade of the Suez Canal is not the only worry
that rattled the oil markets.
Houthi rebels in Yemen launched yet another attack on the Saudi oil facilities causing some damage using drones and missiles. This time, their scope of attack went beyond the oil facilities, targeting even military sites.
Of course, Saudi Arabia said it would retaliate and the
response, as always, will be in the form of airstrikes, despite not achieving
anything substantial beyond PR victories; there is no indication that the vicious
cycle will be broken very soon, despite the Saudi peace overtures to the
Houthis.
The outbreaks of pandemic across the world,
especially in Europe, could potentially affect the demand of crude oil in the
coming months too.
In the United Kingdom, meanwhile, the lockdown may
be extended until September despite the success of an island-wide vaccination
programme and plummeting infections – and deaths.
The negative sentiment that stems from the triple
whammy has pushed the oil price by a moderate amount. The length of the
new-found buoyancy, however, will only be in direct proportion to the time
taken for the completion of the salvage operations involving the tanker.
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Judging by the progress made so far, unless
international players get involved, the rescue operations will only be
prolonged – much to dismay of millions who got affected.
