Louisiana opened nine of 125 gates to drain surplus water into an offshoot river basin as part of a strategy to prevent flooding in Baton Rouge and New Orleans. Fuel producers in Louisiana only trail those in Texas as the U.S.' largest, according to U.S. Energy Department data.
"Worries about the Mississippi River overflowing and shutting a number of refineries have dissipated with the opening of the spillway," Carl Larry, director of energy derivatives and research at New York-based Blue Ocean Brokerage, told Bloomberg. "The biggest impact has been in the gasoline market, which is dragging the rest of the complex lower."
At 4:02 p.m. on Monday, Brent crude oil futures were down 2.61 percent, a $2.96 dive to $110.32 per barrel.
"The measures taken by the authorities reduce the risk of flooding to some significant refineries along the lower Mississippi," Tim Evans, an energy analyst with Citi Futures Perspective in New York, told the news service.
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