What happens to prices after the hurricane?

[SGrooms]

I hope and pray that everyone stays safe in New Orleans and the surrounding area during this time. There is nothing I can think of that would prepare anyone for this kind of devastation that they are saying is coming.



But in the aftermath... what of fuel prices? What should we expect?

 

[TimG]

They will use any excuse to raise the prices. In Baton Rouge, with alot of the New Orleans people traveling thru on their way west, prices have gone up $. 45 per gallion since yesterday. I hope the authorities prosocute the "Price Galgers"

 

[Jeff H]

Kinda wondering if parts of the midwest may see shortages. Hopefully Bush taps into the reserves if that happens. This could get interesting?

 

[jnelson]

I would be more worried about Port Fourchon than New Orleans. If you know anything about offshore drilling (gom shelf - Gulf of Mexico), Port Fourchon is an extremely major link.

 

[rbattelle]

Wasn't this the premise of that FX movie "Oil Storm"? A huge hurricane destroys the Gulf of Mexico oil rigs, then the Saudis raise prices. Domestic gas prices go through the roof. Bad things happen. Or something like that.



-Ryan

 

[67guzzler]

Wasn't this the premise of that FX movie "Oil Storm"? A huge hurricane destroys the Gulf of Mexico oil rigs, then the Saudis raise prices. Domestic gas prices go through the roof. Bad things happen. Or something like that.



-Ryan

Yes -- I watched that movie twice. As I watched it I thought that it was eerily possible that it would come true. Seems that it might be the case.

 

[Alan Reagan]

Not only the oil platforms shutting down but the refineries in Morgan City having to shut down, even temporarily will cause a huge spike in prices.

 

[Champane Flight]

La

LA is a major link to the oil supply all over the east coast. Over 25% of their oil comes from LA... . Can you say "Buy oil stock?"

 

[nickleinonen]

Can you say "Buy oil stock?"

should have did that like 5+ years ago

 

[Rescue Ram]

Earlier this morning, CNN reported that oil hit the $70/ barrel mark.

 

[RustyJC]

Offshore production in the Gulf is shut in. 1 million barrels per day of refining capacity in south Louisiana is shut down. That's a pretty substantial supply interruption, so the laws of supply and demand say that the MARKET will drive up the price for crude oil and refined products.



Rusty

 

[Grizzly]

May be wise to fill all our vehicles today.

 

[klenger]

Obviously, this puts a pretty big crimp in US oil supply and production, but I am curious as to how much it affects the worldwide supply. Given that oil is a worldwide commodity, it might not make all that much difference in the price of foreign oil. Of course, that would not prevent the oil companies from raising prices here anyway. The extent of the damage to off-shore rigs and refineries is yet to be determined. Extensive repairs could take a real bite out the oil companies record profits. I'm not sure if that bothers me or not.