Oil Tops $70 As Katrina Nears Louisiana - AP Update

[VolcanoJen]

http://news.yahoo.com/s/ap/20050829/ap_on_bi_ge/hurricane_katrina_oil

This is a major AP update to the developing story of crude oil spikes as a result of Katrina. It's well worth reading all the way through.

Previous LBN threads, as the markets developed:

U.S. oil surges $4 to record above $70

Japanese Stocks Fall As Oil Prices Soar ($70+ per barrel)

Excerpt:

"This is the big one," said Peter Beutel, an oil analyst with Cameron Hanover. "This is unmitigated, bad news for consumers."

Light, sweet crude for October delivery on the New York Mercantile Exchange climbed as much as $4.67 a barrel in electronic after-hours trading in Singapore to hit a high of $70.80 a barrel. Gasoline traded at $2.14 a gallon, up 21 cents, while heating oil rose more than 17 cents to $2.01 a gallon.

Along with oil and gas futures spiking Monday, natural gas was up. The "out of control" buying is spurred by the prospect that the region's numerous refineries could be idled for weeks by flooding, power outages, or both, Beutel said.

<<<snip>>>

"If this thing knocks out significant quantities of refining capacity ... we're going to be in deep, dark trouble," said Ed Silliere, vice president of risk management at Energy Merchant LLC in New York.

[wli]

1. here comes Great Depression v2.0

It'll probably make the original look like a Greenspan-induced economic sniffle.

[ClintonTyree]

2. Let the gouging begin..........

all on the up and up, of course! The petroleum industry would NEVER gouge the American people. :eyes: At least that's what we're always told after the many "investigations" into those claims by Congress. :puke:

[Blaq Dem]

3. I hear the wicked laughter of Enron execs as CA suffered thru power outage

[bklyncowgirl]

4. We are screwed--oil companies are in price gouging heaven

...and Bush and his cronies will be raking in the dough. $5.00 a gallon gas anyone.

[tsuki]

5. Conservatives live for disasters like this. $$$$$$$ eom

[jus_the_facts]

6. latest radar loop link and satellite picture.....

http://www.weatherunderground.com/US/Region/Southcentral/2xpxRadar.html

[whistle]

7. Profiteering and greed and short term thinking and neglect all

...brought about by five years of BushCo economics and republican focus on special interests instead of the national U.S. interest.