Gas Prices and Chris

[EverythingIsEverything]

If Chris reaches hurricane status and enters the Gulf, do you think gas prices will be raised? They are already high now!

[Regit]

Yes, but not as far as some think. Just getting into the gulf would probably raise them about 20 cents. A major hit on the US that took out several refineries might make it go up a dollar.

[skysummit]

Without a doubt. They'll probably raise them to practice for when they really raise them.

[gatorcane]

Yes, but not as far as some think. Just getting into the gulf would probably raise them about 20 cents. A major hit on the US that took out several refineries might make it go up a dollar.

I think a CAT 3+ in the GOM will raise them at least a couple of dollars.

[TheEuropean]

That's also a problem here in europe. Gas prices are nearly as high as at the beginning of september last year after Katrina. If another hurricane will enter the gulf, oil prices will reach 80-90 Dollars and gas prices will climb within a few days all over the world.

[TampaFl]

Just even the mention of Chris reaching hurricane status and then entering the Gulf, I predict that by Friday the oil "speculators" are going to be driving the price of oil up


Robert

[Regit]

Yes, but not as far as some think. Just getting into the gulf would probably raise them about 20 cents. A major hit on the US that took out several refineries might make it go up a dollar.

I think a CAT 3+ in the GOM will raise them at least a couple of dollars.

Gas has never gone up that much before and it won't now. Last year's GOM storms (including one which took out major US refineries) only made them go up a dollar.

[seaswing]

I don't know about other states but in Florida, if the Governor issues a State of Emergency then gas prices would be fixed to prevent price gouging.

[Trader Ron]

Yes, but not as far as some think. Just getting into the gulf would probably raise them about 20 cents. A major hit on the US that took out several refineries might make it go up a dollar.

I think a CAT 3+ in the GOM will raise them at least a couple of dollars.

I'm a portfolio manager who has owned energy stocks for ten years. Gas will not go up $2. I could not understand nat gas trading at 5.80 ten day's ago. It's not like they cancelled the summer or the Hurricane season.

[trendal]

Yes, most definitely.

Oil prices have been going up for the past couple days, I wouldn't be surprised if this was already due to some speculation about Chris.

[brunota2003]

gas prices here are floating around $2.95 or so...if it gets into the GOM...well, I dont even want to think about that because it just plain scares me...and I dont even drive yet...

[stormtruth]

Yes, most definitely.

Oil prices have been going up for the past couple days, I wouldn't be surprised if this was already due to some speculation about Chris.

probably more Middle East related at this point. Well, maybe a little bit o' Chris speculation.

Up to $76.40 right now
http://www.bloomberg.com/markets/commod ... rices.html

[MississippiHurricane]

If Chris comes this way as a hurricane, I will fill up BOTH my cars. Each can get close to 300 miles per tank. This way if gas goes up, ill be good to go for a while. I filled up last year before katrina and im glad I did. People here just went crazy. I was without power for about 5 days.One man got killed over a bag of ice. I HOPE it stays away from here. If it were to even come close to the track of Rita, we will be in Tornado Warnings for a while.

[gtalum]

I'd say it's possible we could see a short term spike to $3.50. I doubt it'll even get there.

[MississippiHurricane]

I wish cars could run off milk: its about $1.98 a gallon.

[TampaFl]

Sizzling Temperatures Push Natural Gas Prices Higher

Wednesday, August 02, 2006




NEW YORK — Natural gas futures soared for the third straight day Wednesday as scorching temperatures baked states in the Northeast and the Midwest.

Crude and gasoline prices also rose sharply, after a goverment report showed that U.S. crude and gasoline inventories fell last week, and a tropical storm gained strength in the Caribbean.Air conditioners in the United States have been putting pressure on national electricity grids and driving up the price of the natural gas that is the lifeblood of many power plants. Near-record high temperatures were predicted throughout the East, with temperatures topping 100 degrees as far north as Maine.

Natural gas rose 77 cents to $8.34 per thousand cubic feet in morning trading on the New York Mercantile Exchange. That contract had surged 14 percent on Monday to settle at $8.211, the highest close since early February.

"It's record temperatures throughout the country, and the power grid is under tremendous pressure," said Oppenheimer analyst Fadel Gheit.

Although this year's mild winter had left natural gas inventories at peak levels, "the high level of inventory is all temporary," said Gheit. "Once demand starts, it soaks up a lot of volume in a very, very short period of time."

Wednesday morning, the U.S. Department of Energy said that crude oil inventories fell by 1.8 million barrels in the last week of July to 333.7 million barrels — still 4 percent above levels a year ago.

Gasoline inventories slipped by 100,000 barrels to 210.9 million barrels, and are just about 1 percent above year-ago levels.

Distillate fuel inventories, meanwhile, rose by 700,000 barrels to 132.6 million barrels.

The Energy Department will release last week's natural gas inventory figures on Thursday. The previous week, the United States had 2.76 trillion cubic feet of natural gas in underground storage. The five-year average for this time of year is 2.27 trillion cubic feet.

Light sweet crude for September delivery rose $1.14 to $76.10 a barrel on the New York Mercantile Exchange in morning trading Wednesday.

Gasoline futures on the Nymex rose more than 4 cents to $2.3225 a gallon, while heating oil rose more than 4 cents to $2.1215 a gallon.

The average U.S. retail price of a gallon of regular unleaded gasoline was $3.001 on Wednesday, up from $2.926 a month ago, according to AAA.

Forecasters said Tropical Storm Chris could become the Atlantic's first full-fledged hurricane of the year by Wednesday evening, as the third named storm of the season brushed past islands in the eastern Caribbean early in the day. That raised traders' fears that it could strengthen and damage oil platforms and refineries along the Gulf Coast.In the Middle East, there were no signs of a quick resolution to the escalating conflict between Israel and Hezbollah guerrillas in Lebanon.

Oil traders have been focused on the violence for nearly three weeks, worried about possible supply interruptions. Iran, OPEC's No. 2 supplier, is a backer of Hezbollah and is in the midst of a diplomatic standoff with the United Nations over its nuclear program.

On Tuesday, Iranian President Mahmoud Ahmadinejad rejected a U.N. Security Council resolution that would give his nation until Aug. 31 to suspend uranium enrichment.

"There are many issues that are supportive of strong prices," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "However, barring any change in the geopolitical situation or a hurricane, I expect prices to stay around the mid-70s for the near term."
On July 14, crude prices rose to a record $78.40 a barrel due to traders' concern that Iran could cut supplies if it gets involved in the fighting in Lebanon and Israel.

Click here to visit FOXBusiness.com's Energy Center.

[Trader Ron]

People pay $2 for a bottle of water. $8 a gallon, But complain about gas prices. Same for a Cup of starbucks.

[LSU2001]

People pay $2 for a bottle of water. $8 a gallon, But complain about gas prices. Same for a Cup of starbucks.

We don't buy 30-40 gallons of water or starbuck each week to get to work. Nor do we "HAVE" to buy water and starbucks, we have to buy gas to move about, at least in my area. (very little mass transit) so yeah I do complain about high gas prices because it lowers my net income.
Just my 2 cents,
Tim

[GeneratorPower]

I don't know about other states but in Florida, if the Governor issues a State of Emergency then gas prices would be fixed to prevent price gouging.

If that's true, you'll eventually be sorry about it. If you fix gas at $3 a gallon and it costs $3.50 to buy it at the wholesale level, you're going to have NO gas to buy because the gas station owners will not take a loss on gasoline.

Thankfully, I doubt that Florida wouldn't have allowed for normal price fluctuations. They are probably just preventing retail gasoline "price gouging", which keeps stations from going from $3 to $8 when supply still costs $2.50.

Just my $0.02. (Pun intended)

[BUD]

The thing is like my wife's friend said who is a manger at a gas station,it will go up but it depends how strong Chris gets.The CEOs of the oil companys are watching this storm like a hawk!!!