Generic Hero BannerGeneric Hero Banner
Latest market news

US shuts Eagle Pass, El Paso rail links to Mexico

  • Market: Agriculture, Biofuels, Chemicals, Coal, Crude oil, Fertilizers, Metals, Oil products, Petrochemicals
  • 18/12/23

North American railroads are urging US border officials to reopen rail crossings at Eagle Pass and El Paso, Texas, which were shut at 9am ET today in an effort to curtail migrant crossings, cutting into 24 trains/day of commodities, including crude, metals and agriculture.

US Customs and Border Protection temporarily suspended rail operations "to redirect personnel to assist the US Border Patrol with taking migrants into custody," the agency said.

There has been "a recent resurgence of smuggling organizations moving migrants through Mexico via freight trains," the agency said on Sunday in advance of the closure. Rail operations at Eagle Pass had been shut for two days in September for similar reasons.

Major western railroad Union Pacific (UP) said "this is a complex humanitarian crisis," but most migrants are not crossing the border on trains. The railroads use their employees, police force, and technology to seek out people and contraband before they reach the US.

Class I railroads UP and BNSF move trains through Eagle Pass and El Paso. The two railroads combined cross about 24 trains/day at Eagle Pass and El Paso, moving crude, agricultural products, automotive parts, finished vehicles, chemicals and consumer goods.

The closure only affects two locations, but parts of the entire North American rail network may be affected as carriers interchange railcars on a regular basis, sometimes moving them from Mexico to the US and then to Canada and vice versa.

UP called for the crossings to reopen immediately, saying that for every day the border is closed, the railroad must embargo more than 60 trains, or nearly 4,500 rail cars, with an equivalent of goods being held in Mexico.

"There isn't enough capacity at our other four gateways to reroute them," UP said on Monday. "The longer this closure is in effect, the more difficult it will be for cross-border trade to resume."

The Association of American Railroads (AAR), which includes US- and Mexico-based railroads among its members, said there was an urgent need to reopen the crossings.

"There are not separate US and Mexican rail networks; there is only one interconnected North American rail network," AAR chief executive Ian Jefferies said on Monday. "Every day the border remains closed unleashes a cascade of delay across operations on both sides of the border, impacting customers and ultimately consumers."

BNSF did not immediately respond to a request for comment.


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
07/05/25

US Fed holds rate, awaits 'clarity' on tariffs: Update

US Fed holds rate, awaits 'clarity' on tariffs: Update

Adds Powell comments, CME, GDP data. Houston, 7 May (Argus) — US Federal Reserve policymakers kept their target interest rate flat today for a third time this year, noting that economic "uncertainty" has increased, while signaling they would continue to monitor the impacts of the new US administration's policies before adjusting monetary policy. The Fed's Federal Open Market Committee (FOMC) held the federal funds rate unchanged at 4.25-4.50pc. The Fed has held the target rate unchanged this year after three rate cuts late last year lowered the target rate by 100 basis points from a two-decade high of 5.25-5.5pc after the Fed sharply hiked rates from near zero to battle inflation that topped 9pc in 2022 during the overheated recovery from the Covid-19 slump. "If the large increases in tariffs that have been announced are sustained, they are likely to generate a rise in inflation, a slowdown in economic growth, and an increase in unemployment," Fed chair Jerome Powell told reporters after the decision. "All of these policies are still evolving however, and their effects on the economy remain highly uncertain." Powell also noted that "we are entering a new phase where the administration is entering into beginning talks with a number of our important trading partners and that has the potential to change the picture materially." US economic growth contracted by an annual 0.3pc in the first quarter of 2025 following 2.4pc growth in the fourth quarter. It was the first quarter of negative growth in three years and raised concerns that the US may be entering a recession amid a raft of poor consumer and business confidence surveys. But Powell pointed out that the driver of the first-quarter contraction was a "distortion" caused by a spike in imports, which subtracts from GDP growth, as businesses stocked up on inventory from abroad to get ahead of the tariff impacts. Overall, he said, "the economy is growing at a solid pace, the labor market appears to be solid. Inflation is running a bit above 2pc. So it's an economy that's been resilient and in good shape." The Fed earlier penciled in two likely quarter point rate cuts this year, but the administration of President Donald Trump's chaotic rolling out of tariff and federal spending policies has continued to push back the likelihood of cuts to the federal funds rate, as measured by the CME's FedWatch tool, to the back half of the year. FedWatch, after Wednesday's decision, sees a 23.3pc probability of a quarter point cut at the June Fed meeting, down from 30.5pc Tuesday. Odds of a quarter point cut in July were little changed at 57pc from the prior day. "Ultimately we think our policy rate is in a good place to stay as we await further clarity on tariffs and ultimately their implications for the economy," Powell said. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Find out more
News

IMO GHG pricing falls short on green methanol, ammonia


07/05/25
News
07/05/25

IMO GHG pricing falls short on green methanol, ammonia

New York, 7 May (Argus) — The International Maritime Organization's (IMO) proposed global greenhouse gas (GHG) pricing mechanism might not drive significant uptake of green methanol and green ammonia by 2035, given current market prices. Despite introducing penalties on high-emission fuels use and tradable surplus credits for low-emission fuels, the mechanism does not sufficiently close the cost gap for green alternatives. Under the system, starting in 2028 ship operators will face a two-tier penalty: $100/t CO₂e for emissions between the base and direct GHG intensity limit, and $380/t CO₂e for those exceeding the looser base limit. These thresholds will tighten annually through 2035. Ship operators can earn tradable credits for overcompliance when their GHG emissions fall below the direct limit. Assuming a surplus CO₂e credit value of $72/t — mirroring April 2025's average EU emissions trading system price — green ammonia would earn about $215/t in surplus credits in 2028 (see chart) . This barely offsets its April spot price of $2,830/t VLSFO equivalent in northwest Europe. Bio-methanol would receive about $175/t in credits, offering minimal relief on its $2,318/t April spot price. Currently, unsubsidized northwest Europe bio-LNG sits mid-range among bunker fuel options under IMO's emissions framework. While more expensive than HSFO, grey LNG, and B30 bioblends, the bio-LNG is cheaper than B100 (pure used cooking oil methyl ester), green ammonia, and bio-methanol. To become cost-competitive with unsubsidized bio-LNG — priced at $1,185/t in April 2025 — green ammonia and bio-methanol prices would need to fall by 57pc and 49pc, respectively, to around $1,220/t VLSFOe and $1,180/t VLSFOe by 2028. Unless green fuel prices drop significantly or fossil fuel prices rise, the IMO's structure alone provides insufficient economic incentive to accelerate green ammonia and bio-methanol adoption at scale. By Stefka Wechsler NW Europe, fuel prices plus IMO penalties and credits Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

Opec+ eight agree accelerated hike for June: Update


07/05/25
News
07/05/25

Opec+ eight agree accelerated hike for June: Update

London, 7 May (Argus) — A core group of eight Opec+ members has agreed to accelerate, for a second consecutive month, their plan to unwind some of their production cuts, the Opec secretariat said Saturday. As it did for May, the group will again raise its collective output target by 411,000 b/d in June, three times as much as it had planned in its original roadmap to gradually unwind 2.2mn b/d of crude production cuts by the middle of next year. The original plan envisaged a slow and steady unwind over 18 months from April, with monthly increments of about 137,000 b/d. But today's decision means that the eight — Saudi Arabia, Russia, the UAE, Kuwait, Iraq, Algeria, Oman and Kazakhstan — will have unwound almost half of the 2.2mn b/d cut in the space of just three months. The decision to maintain this accelerated pace into June is somewhat surprising, given the weakness in oil prices and the outlook for the global economy. The eight's decision last month to deliver a three-in-one hike in May was seen as a key reason for the recent slide in oil prices, alongside US President Donald Trump's tariff policies. Front month Ice Brent futures have fallen by about $13/bl since early April to stand at just over $61/bl. But the eight today pointed to "current healthy market fundamentals, as reflected in the low oil inventories" as a key factor in its latest decision. It reiterated, as it has in the past, that the gradual monthly increases "may be paused or reversed subject to evolving market conditions." As was the case for May, delegates said that the main driver for the June hike was again a desire to send a message to those countries that have persistently breached their production targets since the start of last year — most notably Kazakhstan and Iraq, which each have significant overproduction to compensate for through the middle of next year. "This measure will provide an opportunity for the participating countries to accelerate their compensation," the secretariat said. This group of eight is due to next meet on 1 June to review market conditions and decide on July production levels. By Nader Itayim, Aydin Calik and Bachar Halabi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

US Fed holds rate steady, keeping eye on tariffs


07/05/25
News
07/05/25

US Fed holds rate steady, keeping eye on tariffs

Houston, 7 May (Argus) — US Federal Reserve policymakers kept their target interest rate flat today for a third time this year, noting that economic "uncertainty" has increased while signaling they would continue to monitor the impacts of the new US administration's tariffs and other policies before adjusting monetary policy. The Fed's Federal Open Market Committee (FOMC) held the federal funds rate unchanged at 4.25-4.50pc. The Fed has held the target rate unchanged this year after three rate cuts late last year lowered the target rate by 100 basis points from a two-decade high of 5.25-5.5pc. "Uncertainty about the economic outlook has increased further," the FOMC said in its statement. Policymakers "will carefully assess incoming data, the evolving outlook, and the balance of risks" in considering additional adjustments to the target rate, the statement said, echoing language from prior statements. Fed funds futures markets early Wednesday gave a 73pc probability the Fed's first rate cut of 2025 would be at the July meeting. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

News

India, Saudi Arabia plan two Indian refineries


07/05/25
News
07/05/25

India, Saudi Arabia plan two Indian refineries

Mumbai, 7 May (Argus) — India and Saudi Arabia are to collaborate on the development of two integrated refinery and petrochemical plants in India. The plan was announced after Indian prime minister Narendra Modi met Saudi counterpart Mohammed bin Salman in Jeddah on 22 April, as part of the India–Saudi Arabia Strategic Partnership Council. Saudi Arabia in 2019 pledged to invest $100bn in India in several sectors including energy and petrochemicals. No further details have been provided but the projects could be Indian state-run BPCL's planned facility in Andhra Pradesh and oil firm ONGC's refinery project in Gujarat, according to industry participants. Plans for a 1.2mn b/d refinery in Ratnagiri alongside the UAE's Adnoc have been abandoned because of logistical and land acquisition challenges, industry participants say. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Generic Hero Banner

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more