Katrina Oil Threat Renewed

Source: Reuters


Oil dropped a dollar friday when the markets closed thinking the katrina wasnt going to be much of a concern. How will the market respond when trading resumes Sunday night?

As noted above Shell Oil Co. is shutting off 420,000 and along with all the other companies listed in the same news article it puts it at about 521,000 altogether.

We may see oil up near the $75 mark or more come Monday.. What do you think?

This would be a temporary spike but it underlines how strained we are.

Check out more here
theoildrum.com...



Edit: Fixed Link & Changed Title


[edit on 27-8-2005 by Thatoneguy]

[edit on 27-8-2005 by Thatoneguy]

I would say that at least some noticable spike will occur.

Afterall, its not that often they get an excuse to drain us of more gas money.

A spike would be possible but to say at $75 over 420k barrels of oil a day. This hurricane thing will pass in about 4 days.

Can you say US market has reached it's apex?

About one-sixth of the U.S. oil supply comes through the Port Fourchon facilities. The port, the only one in the region that handles supertankers, accounts for about 13% of U.S. oil imports. About 27% of U.S. domestic production comes through the port's pipelines.

Even a minor disruption in production could send gasoline prices sharply higher.

The region currently produces 1.5 million barrels of oil per day and 10 billion cubic feet of natural gas per day, according to the U.S. Minerals and Management Service.

The gulf produces about a fifth of U.S. natural gas and about a quarter of its crude petroleum.

Stay tuned for the economic effects on world markets come Monday, Katrina could be the catalyst that sets it all in motion.

link

Possible effects on oil platforms by way of hurricane.



www.iht.com...

Anyone remember this movie?

Oil Storm

A huge hurricane hits New Orleans and Port Fourchon, precipitating an oil crisis (along with several other unfortunate events). That was only on a couple of months ago.

Someone should put on their tinfoil hat and scream about psy-ops and HAARP now.

I would say now, after watching the news more that it seems there definately will be some disruption.

Get out the wallets next week.

I don't have the FX Network but I've wanted to see that show since it came out. I looked for a torrent but couldn't find one of those either. That is interesting that the same port that is threatened by this hurricane was mentioned in that movie.

As for that article you posted Frosty. It says that Hurricane Ivan sent oil prices up by 19 percent. Oil closed at 66.13 Friday. Let's assume that we see a 15 percent increase in prices. That makes it $76.05 10% increase is a little over $72.00.....

I'll be topping my tank off first thing in the morning, just in case. I might even go shopping for a scooter. At my age it might look odd but I can still give the finger like the best of'em

Wupy

Well there she goes. Economy is going to dump come morning, hope you are liquid, cause stocks are going to get hammered like Nola is.



Oil Soars to Record as Hurricane Shuts U.S. Gulf Production

Aug. 29 (Bloomberg) -- Crude oil soared to a record $70.80 a barrel in New York after Hurricane Katrina moved into production regions of the Gulf of Mexico, forcing companies including Exxon Mobil Corp. and Chevron Corp. to shut operations.

Royal Dutch Shell Plc said it shut 420,000 barrels of daily oil production in the Gulf. The Louisiana Offshore Oil Port, which handles about 11 percent of U.S. imports, closed Aug. 27. Katrina, with 165 mile-an-hour winds, is one of the most powerful storms ever to enter the Gulf, source of about 30 percent of U.S. oil production and 24 percent of the country's natural gas.

``Forecasters are saying Katrina could do more energy damage than any storm in recent years,'' Jason Schenker an economist with Wachovia Corp. in Charlotte, North Carolina, said before the start of trading. ``It's not just that there's going to be outages for the next couple of days. With shutdowns and damage at platforms and refineries, the bullish impact could be felt for the rest of the year.''

Crude oil for October delivery rose as much as $4.67, or 7 percent, to $70.80 a barrel in electronic after-hours trading on the New York Mercantile Exchange. It was at $70.50 a barrel at 7:05 a.m. Singapore time.

The October contract dropped $1.36, or 2 percent, to close at $66.13 a barrel on Aug. 26. Prices fell last week amid forecasts that Katrina would stay closer to Florida and miss most producing regions of the Gulf. The previous record of $68 a barrel was reached on Aug. 25 as the storm gained strength.

Natural gas gained as much as 23 percent to $12.03 per million British thermal units.

i think we be screwed. not to mention new orleans is quickly turning into the worlds largest stagnant pond of toxic waste

Gas in Northern Ohio just creeped over $3

Right now its at $3.0999

Just when you thought things with gas were as bad as they get....

Well the American oil companies could do the "patriotic" thing and sell gas cheaper, not make as much profit or.....hahaha...I don't know what came over me.

Call Chaves and tell him we'll take his cheaper oil and his socialism anything to get back in our SUV's.


On another note...If a hotel engages in "price gouging" during times of crisis, its a federal crime...but if an oil company does it???


There is no friend anywhere - Lao Tse

Thats a good point! This is like legal gouging of the people in turmoil.

There are at least 20 oil rigs or platforms missing in the Gulf of Mexico. Watch the oil price go up now...