Oil swirls to a record

[tinkerbell]

Hurricane Katrina's devastating blow to U.S. Gulf Coast energy operations sent petroleum prices soaring yesterday, with analysts saying crude prices could hit $80 (U.S.) a barrel and pump prices in the United States headed well above $3 a gallon.

Motorists across North America can expect gasoline pump prices will quickly reflect the hurricane's impact, while users of natural gas and home heating oil will also be hit with rising costs.

On the New York Mercantile Exchange yesterday, frenzied traders drove crude oil prices to a record $70.85 during the day. It ended the day at a record close of $69.81. The price of unleaded gas for September delivery soared 20 per cent to $2.47 a gallon, after rising more than 10 per cent on Monday.

Economist Nariman Behravesh said a prolonged spike in energy costs would have a dramatic impact on consumer confidence and spending, and significantly reduce economic growth in the latter part of the year.

[Charles]

Every time an SUV pushes me and my bicycle off the road I pray to God that prices keep climbing.

[Stephen Philbin]

Ah, but if the price of oil did keep climbing, where would that leave you for tyres and saddles and paint and handle grips and other such parts?

[MstrBob]

I'll say that I am more than a little worried that the massive damage caused by the hurrican will lead to a recession. Imagine, the stopping of refineries, the closed ports, the huge hit to insurance companies, the amount of goverment money that will have to be spent on cleanup.

Having seen pictures on the news tonight of New Orleans, well... Imagine every post-Apocolyptic movie you've ever seen. Total utter destruction, flooding, looting, violence, huger and thirst. Imagine the disease problems!

[PeOfEo]

About SUVs:
SUVs are retarded. The vast majority of people who drive 'big vehicles' do not need them. Gas guzzlers are being used as grocery getters when a mini-van or a station wagon will work just fine. I myself drive a buick lesabre. It is big enough to seat six people but it still gets 30mpg on the freeway.

About Hurricanes: I got to live through a few last summer and was without power for about two weeks total throught the summer and I have to say that it was lame. The utility companies obviously suffered a huge hit... but then you have other companies, such as waste management companies, roofing contracters, the tree companies, who do really well too. So not everyone suffers a huge loss. Think of all the money other companies are making off of the insurance companies, people who flood insurance and need their cars, furniture, and homoe electronics replaced. Disasters have a nice way of creating demand even though they may limit the supply. I know Sears did a whole lot of business when a hurricane was knocking on the door.

[MstrBob]

But what you have to remember now is the sheer scope of damage. 80% of New Orleans is under water, the parts that aren't are cut off and isolated. Any buisnesses and stores that may supply new replaced products are not in the area, many of them have been destroyed and looted.

Course we're gettting off topic aren't we?

[Charles]

Ah, but if the price of oil did keep climbing, where would that leave you for tyres and saddles and paint and handle grips and other such parts?The only bikes with tyres over here are Raleighs and mine's a Cannondale. And if it meant all SUVs were replaced by Mini Coopers I'd gladly pay ten times as much for them.

[hooloovoo24]

This topic is a bit old, but I've been gone and had to speak up about this one.

About a week after the hurricane, my friend and I were getting gas at a local gas station and found out that there was only one station in town with any gas at all! It was crazy. Gas prices have been rising, even the station I usually use (because it's so cheap) is now about equal with the rest of them.