Gustav Could Reverse Welcome Oil Trend

Hurricane, now Category 3, projected to slam into oil platforms, refineries
By Harry Kimball,  Newser Staff
Posted Aug 30, 2008 6:41 PM CDT
Gustav Could Reverse Welcome Oil Trend
Graphic shows the projected path of Hurricane Gustav.   (AP Photo)

(Newser) – Hurricane Gustav is on path to smash into the Gulf Coast's oil-production infrastructure, which could reverse the recent downward trend in gas prices, the San Francisco Chronicle reports. More than a quarter of oil produced in the US comes from the Gulf of Mexico, and producers have already begun evacuating workers from platforms as a precaution. Gustav climbed to Category 4 hurricane today.

“The formation of Gustav has really put a stop to the drop in crude oil,” an expert said. “If we didn't have this storm, we could be talking about crude oil dropping below $110.” Watchers were quick to note that hurricanes are unpredictable, and Gustav could swerve and miss platforms and refineries entirely early next week. Regardless, “prices never go down as far as they went up,” a AAA spokesman said. (Read more oil refineries stories.)

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