This year’s hurricane season—which started yesterday—could spawn a dozen or more named storms, potentially disrupting flow of gasoline across the nation and pushing gas prices beyond $5 or even $6 a gallon, reports CNNMoney. Traders already appear to be including a hurricane premium of 10 cents per gallon into prices, something they’ve done since hurricanes Katrina and Rita in 2005.
Another Katrina could make prices go "absolutely crazy," says one analyst, noting the impact on refineries along the Gulf coast. "The last thing this market needs at this time is a hurricane, because we can't afford to lose any of our refining capacity." An uneventful season—which runs through November—could mean lower prices, however.