Hurricane smashes through the Gulf of Mexico oil production
facilities and what is the market's reaction? Oil is down $5 after going up $2 since yesterday's opening. That's a $7 drop just as Gustav is striking at the heart of our largest oilfields.
3. But it's as if the hurricane itself has caused the market to
drop the price. If Gustav hadn't come along, I suspect that the price per barrel would've remained flat or would have increased slightly on geopolitical concerns.
I'm so glad I don't have any skin in the oil game because I'd be tearing my hair out right now.
most if not all oil rigs and refineries can handle cat 2-3 hurricanes with no problems. cat 4-5 is when the oil industry begins to worry.katrina did`t damage the oil rigs she disrupted the pipelines from the rigs to the refineries. the big problem was the movement of the pipes on the sea bed and exposure of the pipes on land.
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