Will oil spike upwards if Gustav hits Louisiana hard?

MNSL answered 3 months ago …

I like to add some more.

Some see oil prices spike of $5 if Gustav disrupts Gulf energy production. However, petroleum analysts do not agree with dramatic rise in gas and prices

Pl see following link as well.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aVFTmOZAb0hE&r efer=home

We have to wait and see how this storm strengthens but the industry can fare better than it did three years ago,'' Sara Banaszak, senior economist at the American Petroleum Institute, said on Bloomberg Television. Energy companies installed back-up electricity and purchased emergency supplies to avoid the kinds of disruptions caused by Katrina and Rita, she said

Crude oil futures in New York fell 13 cents to $115.46 a barrel in New York yesterday on speculation supplies will be adequate to meet demand after the storm passes. Natural gas futures fell 10.7 cents to $7.943 per million British thermal units on the exchange

When a hurricane hits, it can curtail demand for oil and natural gas by damaging refineries, lowering temperatures, cutting power lines and reducing the need for power generation and closing businesses, said Kyle Cooper, an analyst at IAF Advisors in Houston.