The Suez Canal (in Egypt) is blocked for the first time in its 150+ year history. One of the world’s largest container ships managed to wedge sideways blocking access from both sides. Recovery efforts are underway but there is no timeline for reopening.
Oil rose sharping yesterday, peaking at about +6% before fading. The blockage will cause a supply crunch but markets are betting the rising number of COVID cases the EU and US will keep demand lower. The way I see it, the market’s pricing in these events canceling each other out.
Stocks dipped yesterday. I’m still bearish until March ends.
I’m be watching for development in the canal story. It could affect a lot more than oil.