Worsening Drought May Push Fuel Prices Higher Earlier

Falling water levels on the Mississippi River raise tensions over oil refining volume, Midwest fuel prices plus fall grain shipments to the Gulf.

Published on: Jul 20, 2012

According to other oil players on the river, reports OPIS, Valero may have to load barges less than full and use more barges. Delivery of oil products are not hampered by barge limitations, however. They can be delivered via pipelines, trucks and rails.

Nonetheless, the major drought crisis sweeping the country is causing a drastic slowdown in crude and oil products transportation via barges on the Mississippi River. And, the strategic waterway for commodities deliveries in the heartlands of America has seen a sharp drop in water levels in the past few weeks. With no major weather change anticipated, it could add one more bullish market factor to corn and soybeans.