Whoa, Nellie! Oil prices surged yesterday in anticipation of Hurricane Rita plowing through the Gulf of Mexico as OPEC ministers meeting in Vienna conceded they have no real means to cool red-hot petroleum markets that have become roiled by successive hurricanes in the extensive Gulf of Mexico production region.
The price of U.S. benchmark crude-oil futures for October delivery shot up $4.39 a barrel on the New York Mercantile Exchange and settled at $67.39. That was the highest one-day rise in nominal terms since Nymex began trading oil futures in 1983. Moreover, the storm’s approach is slowing down efforts to fix Gulf production infrastructure that was damaged by Hurricane Katrina. The U.S. Mineral Management Service reported yesterday that 44% of the daily output of oil and natural gas remained off-line from the earlier storm.
Folks, hang on to your hat because it’s going to be one wild ride this week in the oil and gas markets.
Houston's Clear Thinkers
Longtime Houston attorney Tom Kirkendall's observations on developments in law, business, medicine, culture, sports, and other matters of general interest to the Houston business, professional, and academic communities.
The Galveston evacuation
The voluntary evacuation of Galveston, which was announced yesterday, is in full swing. Galveston may no longer be the most…
We’re thinking of you all in the Galveston/Houston area. I hope she moves one way or the other, but either way, it’s going to be a big deal, I think.
Be safe.
Take it from a grizzled veteran of Gulf hurricanes, it’s still a big early to predict where this one will land. But Alicia — a weak cat 3 — devastated large parts of the Houston area in 1983. So, Rita has the potential to do some real damage. All prayers for Houston are much appreciated!
Do hope Rita loses her punch. Am praying for you good folks. God Bless and be safe.