Gas prices and the Ike factor

By Deon Roberts, Online Editor

U.S. drivers could cough up more for gas, thanks to Hurricane Ike.

Ike is on a collision course with Texas, the home of 26 refineries accounting for about one fourth of the nation’s refining capacity. And today, gasoline prices on the wholesale markets rocketed to new levels. They ranged from $4 to almost $5 in the Gulf Coast, Tom Kloza, publisher and chief oil analyst of the Oil Price Information Service in Wall, N.J., said in a story by The Associated Press.

If those prices hold, it could mean serious pain at the pump, because retailers could raise the price of gas to earn a profit. Gas prices could s the record, set on July 17, of $4.114 for the average U.S. retail price of a gallon.
In the meantime, as Ike seems to be causing gas prices to spike, the price of oil is falling. Today, crude oil on the futures market fell below $101 a barrel. That’s the lowest its been since late March.
So, while sinking oil prices usually lead to falling prices at the gas pumps, Ike seems poised to jack up prices.•

Source: http://neworleanscitybusiness.wordpress.com