Posted on 08/28/2005 4:26:56 PM PDT by 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.
I think this is first time Unleaded Gasoline has broken through $2.00/gallon as well.
""It's not gonna stop this side of $150/barrel. It might hit $250 or even $400 per barrel if New Orleans disappears""
get real
Thanks for making me chuckle, mate! Cheers!
Why not just ration gasoline? Give every owner of a licensed vehicle coupons good for the right to buy 12 gallons per week and let the chips fall where they may.
""Why not just ration gasoline? Give every owner of a licensed vehicle coupons good for the right to buy 12 gallons per week and let the chips fall where they may.""
that wont work, that would create a giant black market
Sweet! I'd make a fortune selling my rations, since I use about 20 gallons/month.
That would make it rather difficult for truckers, don't you think?
Lots of oil off the coast of California, FYI
oy. relax, take a deep breath. switch to decaf for a while.
Social Security, of course! Who wouldn't want to give up a tax? Now, I don't want to see poor elderly people suffer, so I'd make sure that charity got a cut.
The market is rationing gasoline, right before our very eyes. It does so every day. And much better than any government can.
the $4 increase is probably just the start... Ivan caused oil prices to rise by $10 within a few weeks....it will depend how extensive the damge is and how soon it can be repaired.....$80 per barrle isnt out of the question within a week or 2...at some point we'll see quite a sharp decline in demand...when oil prices rise demand is initially inelastic, but with time demand becomes quite elestic
I would expect some airline liquidations at $80, that will increase supply
is it me, or is thread filled with nitwits? or is the same nitwit posting as three different ones!? wait, I know. It's a dream. It's all a bad dream....
""Why not just ration gasoline? Give every owner of a licensed vehicle coupons good for the right to buy 12 gallons per week and let the chips fall where they may.""
DU is over there------>
""Bush's friends will not let him release any oil from the reserve. Remember when J.F. Kennedy was starting to talk about eliminating the oil depletion allowance? Look what happened to him a short time later!""
sorry DU is over there <-------
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.