UNITED STATES – The World Meteorological Organization predicts the largest El Niño on record to peak in late 2026, with sea surface anomalies topping 2.9°C. This will further tighten global oil markets. Severe droughts and water shortages are damaging hydro and nuclear power in Europe and Latin America, forcing industrial shutdowns, while declining solar radiation and wind output in China, California, and India are likely to increase dependency on coal generation. Furthermore, dropping water levels in the Panama Canal are limiting LPG and LNG transportation, worsening global supply bottlenecks caused by Middle East tensions, but a quieter Atlantic storm season provides temporary relief to US Gulf Coast exporters. Together, these climate and energy crises threaten to raise global inflation by 0.3 percentage point by 2027.
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(Source: Yahoo Finance)
