Aug

29

$100.oo oil?

August 29, 2005 |

“The markets will treat it like it’s Tyrannosaurus rex, but bigger,” said David Pursell, an energy analyst with Houston’s Pickering Energy Partners.

Likely signaling what’s ahead, Sunday night, when electronic trading resumed on the New York Mercantile Exchange, crude oil futures spiked $4.50 per barrel, putting the cost above $70 for the first time since oil began trading there in 1983.
houston chronicle

If Katrina remains a Cat 5 storm and hits New Orleans it will have the effect of knocking out not only the oil and gas production from the Gulf of Mexico but also a good deal of the infrastructure which supports that production.

The upshot will be a steep rise in prices for oil and natural gas. $100.00 a barrel is not out of the question if production is knocked out long term.


Comments

3 Comments so far

  1. Matt McIntosh on August 29, 2005 9:03 pm

    Urgh, it’s a nitpick but I hate this: it’s only nominally above $70 for the first time. Adjusted for inflation, it’s been as high as $95.

    As Bread DeLong is so fond of saying, why oh why can’t we have a better press corps.

  2. jay on August 29, 2005 10:42 pm

    Good old Bread…Yes, it is only nominally above $70. But the sticker shock filling up the nominally $75,000.00 Navigator for $250.00 will be felt in real terms. And, with luck, will translate to a Smartcar. (As if.)

  3. Matt McIntosh on August 30, 2005 12:50 am

    I could spin that typo as an intentional bit of sillyness, but the truth is I was just thinking of lunch at the time. :)

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