Katrina Kills Gas Prices, Too

Yeah, yeah, I know I am behind the curve on this one. But it is finally time to face facts that Hurricane Katrina is not just another storm, but one which specifically is hurting areas of American where we were/are vulnerable. Now, add gas prices to the mix.

US gasoline futures surged to a record high on Wednesday after the Department of Energy reported a 500,000 barrel drop in gasoline inventories to 194.4m barrels as stocks fell for a ninth week in succession.
The September Nymex gasoline contract rose 17.2 per cent to $2.90, its highest level since opening in 1984.
“US gasoline prices are now in the process of the most dramatic spike ever seen,” said Kevin Norrish, analyst at Barclays Capital.
The inventory data covered the week to August 26 and does not reflect the impact of Hurricane Katrina. Although the US government attempted to calm the market by saying it would tap the strategic petroleum reserve, this move was seen as largely ineffective after the disruption to refining capacity caused by Katrina.
Traders fear gasoline prices could spike higher, as Katrina has left nine refineries idle and four operating at reduced rates. Analysts said reduced refinery output would present a major problem, with estimates of losses of between 20m and 40m barrels of refinery throughput.

Have I mentioned how thankful I am that our house uses natural gas for heating?