Oil trades higher as Suez Canal jam continues

The price of oil is trading higher as Egypt's Suez Canal remains blocked by a cargo ship, elevating trade concerns.

A giant container ship remained stuck sideways Friday as authorities race to free the vessel and reopen traffic in a crucial East-West waterway for global shipping.

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The Ever Given, a Panama-flagged ship that carries cargo between Asia and Europe, ran aground Tuesday.

The blockage has caused headaches for global trade. Around 10% of world trade flows through the canal, which is particularly crucial for the transport of oil. The closure also could affect oil and gas shipments to Europe from the Mideast.

SUEZ CANAL GOODS DELAYS COULD WORSEN IF SHIP IS NOT FREED SOON

Oil prices were trading more than 2% higher on Friday.

U.S. benchmark crude oil gained $1.24 to $59.75 per barrel in electronic trading on the New York Mercantile Exchange. It sank $2.62 on Thursday to $58.56 per barrel.

Brent crude, the standard for international pricing, picked up $1.10 to $63.05 per barrel.

EXPLAINER: HOW A GIANT CONTAINER SHIP IS BLOCKING THE SUEZ CANAL

The ship, owned by Japanese firm Shoei Kisen KK, has blocked traffic in the canal, leaving dozens of smaller ships stranded in the Mediterranean and Red Seas.

The vessel’s bow was touching the eastern wall, while its stern appeared lodged against the western wall — an extraordinary event that experts said they had never heard of happening before in the canal’s 150-year history.

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As of Friday morning, the vessel remained grounded in the same position, with tugboats and dredgers still working to free it, according to Canal service provider Leth Agencies.

It remains unclear when the route would reopen.

The Associated Press contributed to this report.