Ajay Kedia, MD and Commodity Expert of Kedia Advisory told TV9 , that the price of crude oil had seen a rise of 5 to 5.5 percent after the news of sea jams.
After adding excise duty, dealer commission, etc. to the petrol-diesel rate, its price almost doubles.
A huge container ship ‘Ever Given’ got stuck in a huge traffic jam in the Suez Canal linking the Mediterranean Sea and the Red Sea via Egypt (Egypt). Due to this, there was a spurt in crude oil on Wednesday and it was being said that due to this petrol and diesel could be expensive. However, now a new update has come out regarding the effect on the rate of petrol and diesel.
Before telling the update on petrol and diesel, let us tell that this ship from Panama was going to Rotterdam, Netherlands with goods from China. One of the world’s busiest waterways, the Suez Canal is an important route for sea vessels. It is said that this canal accounts for 12 per cent of the world’s total business. This canal provides the shortest route between Europe and Asia.
Increased hope of ending traffic jam
The man-made canal is occupied by Egypt in the year 1869 and the economy of Egypt rests on it. There is constant news about this important sea route for global business. For the last three days, traffic in this canal has come to a complete standstill. However, it is being told that many ships have been installed to remove the jam. Earlier it was being said that it may take weeks to finish the jam. But by Thursday evening, the situation has recovered to a great extent. According to experts, it is expected that the jam will be over by Friday.
What do experts say about the rate of petrol and diesel?
Due to the jamming of this important sea route, it was said that petrol and diesel could be expensive once again. It was being said that due to the possibility of a ship coming to India with crude oil being disturbed and delayed in reaching India.
Regarding this, Ajay Kedia, MD and Commodity Expert of Kedia Advisory told TV9 , that the price of crude oil was seen to increase by 5 to 5.5 percent after the news of sea jam. It was believed that the supply of crude oil would be disrupted due to the jam.
He further said, however, till Thursday afternoon, the price of crude oil has dropped once again. Crude oil prices have seen a decrease of up to 3 per cent. It is expected that soon the traffic jam will be cleared. Ajay Kedia hoped that now petrol-diesel rates will not be expensive.
50 ships pass through the Suez Canal every day
According to the report of the news agency, this ship is stuck near the southern mouth of the canal near the city of Suez. There is a single lane for ships. Professor R. Mercogliano at Campbell University said, “The stranding of the ship could cause significant damage to the trade between the Mediterranean Sea and the Red Sea.” Please tell that 50 cargo ships pass through the Suez Canal every day. With the closure of the canal, no ship will be able to go from north to south.
Efforts are on to remove the long ship
The Ever Given ship sailed for Rotterdam, the Netherlands. Built in the year 2018, the ship is 400 meters in length and 59 meters in width. It is one of the largest cargo ships in the world. At one time, 20 thousand containers can be loaded on it. The Suez Canal, opened in 1869, is one of the routes for transporting oil, natural gas and raw materials from east to west. In such a situation, due to its jam, there is a widespread effect. However, efforts are on to get the jam removed.
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