You thought the price was high before
from the washington post:
Oil Prices Surge Above $70 a Barrel
By GEORGE JAHN
The Associated Press
Monday, August 29, 2005; 9:28 AM
VIENNA, Austria -- Crude oil futures briefly surged past $70 a barrel for the first time Monday as Hurricane Katrina barreled toward the heart of U.S. oil and refinery operations in the Gulf of Mexico, shutting down an estimated 1 million barrels of refining capacity.
The Category 4 storm advanced on an area crucial to the U.S. energy infrastructure _ offshore oil and gas production, import terminals, pipeline networks and numerous refining operations in the southern states of Louisiana and Mississippi.
A National Oceanic and Atmospheric Administration infrared satellite image shows the center of Hurricane Katrina, situated about 90 miles to the south, southeast of New Orleans at about 5 a.m. EDT Monday, Aug. 29, 2005. (AP Photo/NOAA)
A National Oceanic and Atmospheric Administration infrared satellite image shows the center of Hurricane Katrina, situated about 90 miles to the south, southeast of New Orleans at about 5 a.m. EDT Monday, Aug. 29, 2005. (AP Photo/NOAA) (Noaa - AP)
"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 jumped as much as $4.67 a barrel in Singapore to hit a high of $70.80 a barrel before slipping to $68.95 by midday in Europe. That was still up $2.082 from its close on Friday in New York.
Gasoline traded at $2.1220 a gallon, up 19 cents or nearly 12 percent, while heating oil rose more nearly 14 cents to $1.9750 a gallon.
Brent crude was not trading Monday, with London's International Petroleum Exchange closed for a bank holiday.
At its most fierce point, hurricane Katrina bore down on New Orleans with 160-mph winds and a threat of a 28-foot storm surge, forcing a mandatory evacuation of the below-sea-level city.
Katrina has already forced the shutdown of an estimated 1 million barrels of refining capacity and curbing offshore production, but analysts said the storm's potential damage to facilities was even more worrying.
"It's not only the suspension of production that's causing concern, it's the fact that we could see potential damage to the platforms, which would cause longer disruptions to production," said energy analyst Victor Shum of Texas-headquartered Purvin & Gertz in Singapore.
The Gulf of Mexico normally produces 1.5 million barrels of crude oil a day, or about a quarter of the United States' domestic output, according to the U.S. Mineral Management Service.
"It looks like the perfect storm to drive prices up," Shum said.
Katrina quickly grew from a smallish storm threatening Florida into a menacing hurricane in just a few days.
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/29/AR2005082900203.html
Oil Prices Surge Above $70 a Barrel
By GEORGE JAHN
The Associated Press
Monday, August 29, 2005; 9:28 AM
VIENNA, Austria -- Crude oil futures briefly surged past $70 a barrel for the first time Monday as Hurricane Katrina barreled toward the heart of U.S. oil and refinery operations in the Gulf of Mexico, shutting down an estimated 1 million barrels of refining capacity.
The Category 4 storm advanced on an area crucial to the U.S. energy infrastructure _ offshore oil and gas production, import terminals, pipeline networks and numerous refining operations in the southern states of Louisiana and Mississippi.
A National Oceanic and Atmospheric Administration infrared satellite image shows the center of Hurricane Katrina, situated about 90 miles to the south, southeast of New Orleans at about 5 a.m. EDT Monday, Aug. 29, 2005. (AP Photo/NOAA)
A National Oceanic and Atmospheric Administration infrared satellite image shows the center of Hurricane Katrina, situated about 90 miles to the south, southeast of New Orleans at about 5 a.m. EDT Monday, Aug. 29, 2005. (AP Photo/NOAA) (Noaa - AP)
"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 jumped as much as $4.67 a barrel in Singapore to hit a high of $70.80 a barrel before slipping to $68.95 by midday in Europe. That was still up $2.082 from its close on Friday in New York.
Gasoline traded at $2.1220 a gallon, up 19 cents or nearly 12 percent, while heating oil rose more nearly 14 cents to $1.9750 a gallon.
Brent crude was not trading Monday, with London's International Petroleum Exchange closed for a bank holiday.
At its most fierce point, hurricane Katrina bore down on New Orleans with 160-mph winds and a threat of a 28-foot storm surge, forcing a mandatory evacuation of the below-sea-level city.
Katrina has already forced the shutdown of an estimated 1 million barrels of refining capacity and curbing offshore production, but analysts said the storm's potential damage to facilities was even more worrying.
"It's not only the suspension of production that's causing concern, it's the fact that we could see potential damage to the platforms, which would cause longer disruptions to production," said energy analyst Victor Shum of Texas-headquartered Purvin & Gertz in Singapore.
The Gulf of Mexico normally produces 1.5 million barrels of crude oil a day, or about a quarter of the United States' domestic output, according to the U.S. Mineral Management Service.
"It looks like the perfect storm to drive prices up," Shum said.
Katrina quickly grew from a smallish storm threatening Florida into a menacing hurricane in just a few days.
http://www.washingtonpost.com/wp-dyn/content/article/2005/08/29/AR2005082900203.html
posted by mahtin at 9:12 AM
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