3aidlillahi wrote:I know it's just anecdotal, but my friend's parents live in Western NC, which receives its oil from a pipeline from the Gulf Coast, and they are reporting shortages and long lines.
I won't be entirely shocked to find those shortages spread to my region (150 miles East) within a few days or weeks. Tank's all filled up.
Wholesale prices have risen across the country the last two days, although if you followed only the NY futures price you wouldn't be very worried.
9/12/08 AP General Fin./Bus. News 20:51:12
September 12, 2008
Gasoline rises on Ike, but crude dips below $100
MADLEN READ
AP Business Writer
NEW YORK_Gasoline prices jumped at the wholesale level Friday as Hurricane Ike swept through Gulf of Mexico, prompting companies along the Texas coast to shut down refining and drilling operations.
The fact that U.S. fuel demand is so weak right now might mean the recent surge in the wholesale price of gasoline _ which rose to about $4.85 a gallon in the Gulf Coast market Friday _ might not be passed along to consumers unless Ike's impact is severe and long-lasting.
"Major oil companies are sensitive to raising prices in this environment," said Ben Brockwell, director of data pricing and information services at the Oil Price Information Service.
Wholesale gasoline prices on the Gulf Coast moved further into uncharted territory Friday, as refineries anticipated that Ike would lead to at least a significant pause in their operations, and at worst damage to their facilities. On Thursday, the Gulf Coast wholesale price of gasoline last traded at around $4.75 a gallon, according to OPIS, up substantially from about $3.25 Wednesday and less than $3 Tuesday.
Wholesale prices were much lower in other regions such as Chicago, New York and Los Angeles, but even those areas saw prices rise.
"Hopefully it's a temporary phenomenon, but we won't know until next week," Brockwell said.
[no link]
Yes, it may be temporary, Mr. Brockwell. We may never see price levels this low again.
It's already over, now it's just a matter of adjusting.