Economic analysts predicted, on Thursday, that the accident of stranding a Panamanian container ship in the Suez Canal would raise oil prices, transportation and insurance, and the cost of global trade.
Kuwaiti economic analyst Hajjaj Boukhdour told the Russian news agency “Sputnik” that the ship “EVERGREEN” stranded in the Suez Canal disrupted the movement of ships in front and behind, which hindered global trade and oil trade.
Boukhadhour added that “about 10% of the oil trade and 12% of world trade passes through the Suez Canal, and this is a large percentage, and there are about a hundred ships that were supposed to cross, but they stopped passing.”
Boukhadhour explained that this would push oil prices higher, which may be at the same rate of 10%, which is an additional six dollars worth of the price of a barrel of oil, indicating that this situation may take a while to return to normal.
Boukhdhour continued, saying: We may also witness an increase in the cost of transportation and the cost of insurance, and then the cost of global trade will increase, considering that the weather alone is not a sufficient reason for the accident, and that the responsibility rests with the ship and the company that owns it.
It is worth noting that the Panamanian ship “EVERGREEN” was carrying an estimated 20,000 containers that ran aground in the Suez Canal last Tuesday, which led to the suspension of navigation in the canal.