Stock market investment blog

Rita and Oil

Globeandmail writes that Rita is likely to impact oil and gas prices:

By late yesterday, the U.S. government reported that virtually all oil and gas production in the Gulf of Mexico was shut down, while 15 refineries in Texas were also closed.

"It has the potential to significantly disrupt an already fragile energy industry," Mr. Zandi said. With four refineries still out of commission in New Orleans, any further shutdowns would drive gasoline pump prices to new record levels, resulting in higher inflation and further erosion of consumer confidence.

Still, investors were happy to hear forecasts that predict Rita will not hit Houston directly:

Investors took some relief from Rita's shift in course and reduction in wind speed. On the New York Mercantile Exchange, crude oil futures fell nearly $2.31 to $64.19 (U.S.) a barrel, while gasoline futures fell 5.38 cents to $2.0856 a gallon.

Posted by James Trotta at September 24, 2005 9:00 AM