Mississippi River at Risk of Running Low for Third Straight Year
March 22, 2024
Energy markets have bounced a little after a few days of them trading lower. Prices are likely to be steady today as there is hope of a cease fire agreement between Israel and Hamas. Secretary of State Antony Blinken indicated that talks in Qatar my lead to a ceasefire.
In what I thought was an interesting comment the US has encouraged Ukraine not to attack Russian refineries as it will drive up the price of oil. Ukraine said that these are legitimate targets.
The US dollar traded higher after the Swiss National Bank cut rates and that pressured energy price lower.
ING analysts expect the oil market to tighten. It said the rollover of voluntary supply cuts from OPEC+ into the second quarter, Ukraine attacks on Russian refineries more recently and lingering disruptions to oil flows through the Red Sea have recently supported the market. It said the rollover of the OPEC+ supply cuts will shift the oil market from a surplus environment in the second quarter of the year to a deficit.
All of India’s refiners now refuse to take Russian crude carried on Sovcomflot PJSC tankers due to US sanctions, further complicating the trade that has flourished since the invasion of Ukraine two years ago.
The Mississippi River is at risk of bottlenecks for third straight year as warm, dry spring weather and low winter snowpack limit the amount of water feeding into it. This is according to the National Oceanic and Atmospheric Administration.