I had been expecting oil to rise as Ike moved into the Gulf, but for a range of reasons that is not happening. What did happen is the spike in Gas prices:
“The wholesale price of gasoline ranged from $4 to nearly $5 a gallon at the U.S. Gulf Coast on Thursday…That is up significantly from about $3 to $3.30 a gallon on Wednesday…The wholesale price of gasoline is what refineries charge retailers. Retailers then mark up those prices for the customer so they can make a profit — so if these wholesale prices hold, it could mean that pump prices for U.S. drivers easily break through the July 17 record of $4.114 a gallon.”
If the storm continues to head north, I would expect Gas, Oil and Natural Gas to increase in price. Who knows these days, it’s a wild market right now!
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