Ok, do you mean that the prices are 'spiking now' (post-Katrina) from my local's last week's 2.50/gal to today's 2.69/gal - because of "so much loss in refining capacity"?
Look, remember the prices shot up in 2000 from 1.10 to over 1.50 (no gas line shortages I could recall), continuing through the last 4 yrs to last week's 2.50 (no gas line shortages I could recall).
All you have to do is look.
We have been able to refine all the gasoline that we have needed. What are you saying then, that if we had nore refineries we would then 'refine more' gasoline than what we need? For what reason, just to build up more inventories?
Will our refining capacity over the coming weeks be A) more B)less or C) the same? Refineries have been operating at 99% capacity. This time of hte year especially, they are producing heating oil for the winter, reducing the amount of gasoline they can produce. If they are ooperating at 99% and keeping up with demand, but not have a lot of excess production, then isn't it just logical to assume that a big cut in refining means a big overall cut in supplies?