Gas Prices Drop with Hurricane

Friday, September 23, 2005

With the news that Hurricane Rita is not going to be as strong as anticipated, there has been a drop in crude oil prices that should affect the price you pay for gas at the pump. The damage to the oil refineries in Texas is supposed to be far less from Hurricane Rita than Hurricane Katrina.

There are several reasons why Hurricane Rita is estimated to be less damaging to gas prices than Hurricane Katrina. One of these reasons is that the oil refineries that are in the way of the hurricane are on much higher ground in Texas than in New Orleans.

Hurricane Rita has also changed path a bit that should be favorable as far as gas prices go. The strength of Hurricane Rita is not supposed to hit the oil refineries in Texas.

However some analysts are not so optimistic. They say that we will have to wait and see with what happens with Hurricane Rita before we can make a good prediction on the gas prices. The gas prices may go through the roof, or they may go way down depending on damage. It is just too hard to predict the damage to a refinery from a large-scale hurricane.