This year’s Atlantic storm season is expected to be calmer than usual, which is a good thing for oil tankers making their way around the Cape of Good Hope in Africa.
However, it’s a different story in the Pacific, where storms could be much more threatening to routes between the Middle East and Asia.
Already this year, both major blizzards and recent heat waves have taken their toll and hurt countries all over the world. Both U.S. coasts have been hit hard; California is still in a drought.
Current forecasts estimate that storm activity will be at its highest levels in a decade, since the El Niño event back in 2006 and 2007. Back then, energy prices rose 58%.
And with 27 tropical storms predicted to hit this season – more than half of which are likely to reach typhoon levels – it’s easy to see how this could happen again.
Currently, both crude oil prices and the cost of transportation are staying low. That could change quickly, however, if inclement weather starts interrupting things.
This could potentially be a major problem for consumers, who have been enjoying the lower prices at the gas pumps. For individual investors, however, it may be a welcome reprieve from the bouncing oil prices of late.
To continue reading…