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Rita's Wrath May Be At The Gas Pump

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posted on Sep, 24 2005 @ 10:05 PM
The U.S. market lost 2.2 million barrels per day in gasoline production as twenty refineries halted operations or have remained closed in preparation for Rita. The Total fuel refining capacity has been cut by 19 percent nationwide and may send gasoline prices well above $3 a gallon.
The millions of Texans who fled Houston and other Gulf Coast cities to avoid Hurricane Rita are likely to pay higher prices for gasoline -- if they can find it -- on their return trips home.

And even if Rita's damage to Texas and Louisiana oil refineries and pipeline operations proves to be less than was feared, motorists around the country still face the prospect of at least another short-term spike in pump prices, analysts said.

Pump prices, which are already 47 percent higher than a year ago at $2.75 per gallon, could once again climb above $3 a gallon nationwide, analysts said. Supply snags are most problematic for the Gulf Coast, but markets in the East and Midwest are also vulnerable.

Please visit the link provided for the complete story.

I have seen $5-$7/gallon on the top end of estimates for short term spike in fuel prices and read areas of Georgia already hit $5 per gallon.

I am wondering how long this can go on before hyper-inflation sets in and the markets start dropping?

[edit on 24-9-2005 by Regenmacher]

[edit on 27-9-2005 by asala]

posted on Sep, 28 2005 @ 04:39 AM
I thought this was a good follow up and shows how the big oil plays against the economists.

Oil reserves are double previous estimates, says Saudi

Saudi Arabia, the biggest oil producer, and Exxon Mobil, the largest oil company, yesterday declared that the world had decades' worth of oil to come, in an attempt to calm fears about the record prices experienced in recent weeks.

Forming a powerful alliance, the Saudi oil minister Ali al-Naimi said, at an industry conference in Johannesburg, that the country would soon almost double its "proven" reserve base, while Exxon's president, Rex Tillerson, spoke of 3 trillion or more barrels of oil that are yet to be recovered.

Please visit the link provided for the complete story.

Note the Saudis usually overinflate their actual oil reserves to promote stability in the Middle East. In this case, they threw the biggest "Hail Mary" I have ever seen in the big oil game.

Next week will they fumble in the end zone?

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