Rhine Drought Means Gas Shortages Amid Oil Glut - Gainesville Coins News
No Minimum order! We accept Pay with Credit Card
Call Us: (813) 482-9300 Mon-Fri 9:00AM-6:00PM EST
Login or Register
Log into your account
About Gainesville Coins ®
Billions Of Dollars Bought And Sold A+ BBB Rating 10+ Years No Hidden Fees Or Commissions All Inventory Ships Directly From Our Vault

Rhine Drought Means Gas Shortages Amid Oil Glut

blog | Published On by
Rhine Drought Means Gas Shortages Amid Oil Glut
Low levels on the Rhine River are stranding oil barges Low levels on the Rhine River are stranding oil barges

As difficult as it is to believe, Switzerland and part of Germany are experiencing fuel shortages, while European ports are filled to bursting with crude oil. The culprit in this case is a severe drought in the Rhine Valley, which started in August. With river levels at a four-year low, the oil barges cannot get upstream to deliver oil to refineries.

The situation has gotten so bad, the Swiss government had to release oil from its strategic petroleum reserve. This contrasts with the situation at the Amsterdam-Rotterdam-Antwerp shipping nexus, which has virtually run out of places to store the crude oil that's coming in. Oil tankers are backed up in the harbors, waiting for a chance to unload.

The rail system doesn't have the capacity to meet sudden surge in petroleum shipments The rail system doesn't have the capacity to meet sudden surge in petroleum shipments

The majority of transport of bulk goods in the Rhine Valley has been done by river barges for hundreds of years. As the drought strands oil barges, companies are turning to the rail system, but there's not enough tank cars to meet the sudden surge in demand.

If the drought continues to strand oil barges, Germans and Swiss may see a spike in fuel costs, at the same time that oil prices are bottoming out.

 

The opinions and forecasts herein are provided solely for informational purposes, and should not be used or construed as an offer, solicitation, or recommendation to buy or sell any product.

About the Author

Everett Millman

Steven Cochran

Precious Metals Market Analyst
BS University of South Florida (2002)

A published writer, Steven's coverage of precious metals goes beyond the daily news to explain how ancillary factors affect the market.

Steven specializes in market analysis with an emphasis on stocks, corporate bonds, and government debt. He writes a monthly review of the precious metals markets for SurvivalBlog.com.

This site uses cookies for analytics and to deliver personalized content. By continuing to browse our site, you agree that you have read and understand our Privacy Policy.