Retailers Face Gas Rationing

[NNN0LHI]

http://www.wtok.com/news/headlines/1710826.html

The Associated Press


Crude oil prices fell in jittery trading Wednesday after the U.S. government said it would loan oil to refiners struggling in the wake of Hurricane Katrina.

The oil from the federal strategic petroleum reserve aims to keep production of gasoline and other fuels steady. But wholesale and retail gasoline prices leaped higher nationwide.

Light sweet crude for October delivery on the New York Mercantile Exchange fell 56 cents to $69.25 a barrel. That's down from an overnight high of $70.65 per barrel.

On Tuesday, oil futures settled at $69.81. That's the highest closing price on Nymex since trading began in 1983, although still below the inflation-adjusted high of about $90.00 a barrel set in 1980.

:popcorn:

[sarcasmo]

1. Looks like traveling isn't a smart idea right now.

[gmoney]

2. Happy Labor Day!

Gas just jumped over 50 cents a gallon to $3.09 at the stations in the area. I suspect we'll hit $4.00 over the weekend.

Windfall profits tax anybody?

[slestak]

4. Here in NM

...gas prices have risen 35 cents in the past two days. It's now $2.999/gal.

[UpInArms]

6. Taxes! That's just downright un-Murkin!

Why do you hate 'Murka??

:sarcasm:

[MnFats]

3. headline mentions rationing; the story does not.

what gives?
maybe i need new glasses more than i think.....

[VolcanoJen]

5. You're right. Here's a link from Bloomberg; the rationing seems to be...

... on the wholesale end.

They've got to watch the way they throw the "ration" word around. Widespread panic could ensue, you know?

Oil Rises, Gasoline Reaches Record as Katrina Forces Rationing

Excerpt:

Aug. 31 (Bloomberg) -- Crude oil rose above $70 a barrel and gasoline reached a record for a third day after Hurricane Katrina paralyzed U.S. oil output, refining and imports along the Gulf of Mexico coast, forcing wholesalers to ration fuel.

Oil and natural gas platforms were shut for a fourth day, sending natural gas prices to a record as well. Eight refineries in Louisiana and Mississippi, accounting for more than 10 percent of U.S. refining capacity, were closed by the approach of Katrina, the most powerful storm to strike the Gulf coast since 1969.

``You have an oil market that is quite tight in the products side, particularly in the U.S.,'' said Robert Mabro, president of the U.K.-based Oxford Institute for Energy Studies. ``Then you have a hurricane which closed eight refineries. The market looks at the situation and realizes supplies are even tighter. Prices will only fall if demand declines.''

[CottonBear]

7. Widespread panic is ensuing here in GA due to RW rumours.

Gas prices are up 35cents overnight here in the Athens GA area.
There are lines at every gas station and station are running out of gas in some tanks. Reg.is $299/Gal. It was $2.65/Gal. yesterday.

Can you say "price gouging"?

[mitchum]

8. Every station I just drove by on the way home had incredibly...

long lines backing out into the street. I'm also in Athens.
Price gouging.

[CottonBear]

10. Rumor=Panic=Price Gouging. Hi fellow Athenian! n/t

[mitchum]

13. Hi!...

:)
The lady at my bank said that she has been watching the owner of the station across the highway raise his prices all day. At last count, he had it up to $3.75 a gallon! This is the Chevron convenience store across from Robbins Federal Credit Union on the Atlanta Hwy. I will never patronize that profiteer.

[CottonBear]

15. Holy crap. Never again will I go there. Take care and don't drive much.

[Danmel]

9. Sounds tame to me!

My husband filled up this morning at $2.76. I went to the same station four hours later and it was $3.30! 54 cents a gallon in four hours! In the NYC suburbs. Unbelievable! $46.20 to fill a Camry! Looks like we're not buying much stuff from now on!

[CottonBear]

11. Damn. n/t

[MGKrebs]

12. Isn't the petroleum reserve kept in old salt mines in Louisiana?

How the hell are they going to get that into the system?

[AnneD]

14. There are lots of salt domes

in Texas. So if Houston gets hit this Hurricane this season....we are all SO screwed.

[Massacure]

16. They are along along the gulf coast.

They will probably use one from Texas.