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Egypt, a net crude importer, hopes OPEC's production cut will lift Suez Canal traffic and revenue, since the oil price slump since 2014 hurt canal income. The article notes Egypt's canal tariffs are high relative to bunker fuel savings from the Cape route.
OPEC's output cut supports crude prices, which lifts energy and fuel costs for feed processing and transport. The canal revenue angle is secondary to the price effect on energy markets.
ctrmcenter.comPlatts BlogDec 5, 2016After 438 past bullish policy events, Crude Oil (WTI) moved a median +0.9% over 5 sessions (61% higher; middle half -2.2% to +4.6%), and +2.0% over 20.
After 442 past bullish policy events, Crude Oil (Brent) moved a median +1.4% over 5 sessions (60% higher; middle half -2.0% to +4.9%), and +2.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
