Oil Prices Plummet As Hurricane Gustav Blows Out

Hurricane Gustav ended up being less damaging to the Gulf Coast than expected. So despite fears that local oil and gas facilities would be wiped out, they remain intact.

NYT: From initial reports, the storm appeared to leave production platforms and refineries essentially unharmed, meaning that oil and gas supplies would not be disrupted and prices at the pump may continue to ease in the days ahead.

At the least, oil experts said the risk of a sharp price spike appeared to have faded, unless flooding or power failures have a lasting impact on refineries and port facilities over the coming days.

“We dodged the bullet,” said Darron Granger, a senior vice president at Cheniere Energy, a Houston-based company that imports liquefied natural gas and explores for oil and gas in the Gulf of Mexico. “This is probably not going to have any impact on any oil or gas supply.”

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