Of particular concern is the potential shutdown of the Louisiana Offshore Oil Port at the mouth of the Mississippi because of the oil spill. A shutdown would prevent the importing of 1.2 million barrels of foreign oil that feed half this nation’s refinery capacity. But even in this case, the government could choose to draw from its Strategic Petroleum Reserve to offset any negative economic fallout.
The biggest worry that remains is shipping through the Mississippi’s Southwest Pass, where refined oil is exported in small tankers for U.S. ports. Any interruption in those supplies could ratchet up gas prices. [ETF Strategies for a Natural Gas Rebound.]
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Sumin Kim contributed to this article.