Oil Prices, Gasoline Prices, and Katrina
The television journalists I have been watching do not understand.
Oil is traded in a world market. Katrina had little effect there, as can be seen here which lists oil futures prices. There was a minimal impact on oil futures for January '06.
Gasoline is traded regionally in the U.S., and gasoline futures for January '06 rose by nearly 20%.
The major energy effect of Katrina will be on U.S. (and probably Canadian) gasoline prices because of the impact on refining capacity, not because of the minor impact of world pumping capacity or reserves.
For much more, see James Hamilton's Econobrowser.
Oil is traded in a world market. Katrina had little effect there, as can be seen here which lists oil futures prices. There was a minimal impact on oil futures for January '06.
Gasoline is traded regionally in the U.S., and gasoline futures for January '06 rose by nearly 20%.
The major energy effect of Katrina will be on U.S. (and probably Canadian) gasoline prices because of the impact on refining capacity, not because of the minor impact of world pumping capacity or reserves.
For much more, see James Hamilton's Econobrowser.
posted by EclectEcon @ 8/30/2005 07:41:00 a.m.
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