U.S. oil surges $4, to record above $70, on hurricane

reuters.com ^ | 28 August 2005

[lauriehelds]

SINGAPORE, Aug 29 (Reuters) - U.S. crude oil futures surged more than $4 in opening trade on Monday, hitting a new record high above $70 a barrel after Hurricane Katrina forced Gulf of Mexico producers to shut in more than a third of their output.

Katrina, which strengthened into a rare, maximum power Category 5 hurricane as it spun through key oil and gas fields toward New Orleans, shut in a total 633,000 barrels per day

(bpd), according to company figures on Sunday.

It also forced the closure of seven refineries and a major U.S. crude import terminal.

Crude oil futures on the New York Mercantile Exchange

(NYMEX) surged as high as $70.80 a barrel, up $4.67 a barrel, as traders feared lasting damage could further strain an industry that has struggled to keep up with demand for two years.

[hoosierham]

It is the buying panic that worries me as much or more than actual shortages.This is a nation where some people fought over stupid ugly dolls and "talking" toys..

[hoosierham]

$4.50 a gallon for gas and lots of people are going to be hurting real bad.

[ConsentofGoverned]

"But for most, if you want to see a decrease in the PPB, and a subsequent cut at the pump, lobby your legislators to neuter or eliminate the EPA"

How about EPA's 40 different blends of gas mandated for each state to cut smog LOL..talk about a way to make refining less efficient well thats our Government at work reducing refining and also stopping industry from making any money on building new refineries..gee I wonder why gas is at $2.45?? if we could go back to couple of gas blends it would have a major impact on cost of gasoline for cars. but I never hear the bleeding hearts here recommend getting rid of EPA Mandates

[jec41]

is this accurate?? you mean there is no facility on the east coast or in Houston

Thats correct.

[ConsentofGoverned]

"$4.50 a gallon for gas and lots of people are going to be hurting real bad."

LOL what a maroon..maybe they will have less money for
buying the sewer that Hollywood and music co's produce..
Hey lets get gas up to $6.00 and the demorats will not raise a dime from the downtrodden Unions//hurray.

[jec41]

If I remenber correctly the problem was caused by the government imposing false market price caps.

US production peaked in 73. SA and Iran became the new supply after OPEC lifted their oil embargo aganist the US.

[hawkk]

was wondering if anyone could answer a question for me? what are the rules of raising the prices? can a station do it at any time? I always heard that the price had to be the same till a new truck full (at higher price) was brought in?

[eeriegeno]

Katrina, which strengthened into a rare, maximum power Category 5 hurricane as it spun through key oil and gas fields toward New Orleans, shut in a total 633,000 barrels per day

And what percentage of the total world usage is 633k bpd? Doesn't seem like it justifies a $4+ increase on WORLD OIL PRICES?????? Speculators have gone wild here????????????????

[dalereed]

"would you give up cheap gasoline or social security?"

Social Security, it's unconstitutional and should be eliminated.

BTW, i'm 67.

[thackney]

If Bush doesn't release enough oil to make up for the disruption...it will be criminal!

The system is already in place. It is up to the oil companies to use it.

The U.S. Department of Energy has developed an on-line Crude Oil Sales Offer system for emergency sales of crude oil from the Strategic Petroleum Reserve.

[BlackjackPershing]

Bush needs to release national reserves immediately to stop the market shock.

[hoosierham]

Nice of you to wish hardship on your fellow citizens;or are all the working poor automatically your enemies ?

You're not going to win many votes for your cause that way.

[ARCADIA]

wait awhile for $100 per barrel.

This isn't a price adjustment, it is the onset of what could be hyper-inflation within the world's largest free market. So lets be clear on the choices we are making, because the reprocussions are far bigger then the stock ticker. The claxon is sounding loudly, lets hope our leadership finally decided to stir their fat asses to deal with the crisis. If the solution involve mobilizing another 2 million troops to stabalize production in the Middle East, or taking steps to disconnect from China's economy, then so be it. The cost to either of those will be trivial compared to what fast rising oil prices will do to us.

[dalereed]

"A steep tax should be imposed on all vehicles that get less than 20 mpg combined and a tax credit given to all vehicles that get more than 30mpg combined"

The tin cans should be run off the road!

[Euro-American Scum]

(American whine) "but, but I don't want to give up my SUV!"

So? What? We hate SUV drivers now? They're getting what's coming to them? Take it back to DU along with the rest of your bilge.

People can drive what they damn well please. Remember that.

[bigsigh]

I have been sacrificing since the 70s, it's time for a government action. The market has not responded to this problem for 28 years. Oil is a national defense item and is tied to our economical well being. The inaction of congress and the presidents is unconscionable. The oil companies make record profits every time we have these big price jumps.

I'm open to suggestions.

[SolarisRocks]

You do know that Trains, Trucks, Air Freight, and Ships all run on fuel made from oil, don't you? It isn't simply the cost of driving a personal vehicle that will go up, soon it will be the price of almost everything on store shelves.

[thackney]

The majority of people in this country can barely afford $2.50/gallon gas as it is!

If they can barely afford it, can you list some of the changes the majority have made in their lifes?

[ConsentofGoverned]

"Nice of you to wish hardship on your fellow citizens;or are all the working poor automatically your enemies ?
You're not going to win many votes for your cause that way."

boo hoo, there is no working poor in USA ..poor is when you live in cardboard huts with dirt floors and no running water - no electric service - and no food to eat.. where every 3rd child dies of disease and where they have running sewers in the streets..

We have not seen real poverty in America in decades so spare me your bleeding heart idiocy

[hoosierham]

Let's see now,the complaint here is often about the huge donatrions Soros and the like, $6 gas won't affect anyone who buys $5o entrees! Union donations are usually involuntary so those won't shrink unless $6 gas causes large-scale unemployment through plant closings and construction project cancellations.