Before Katrina, the system was already so tight that the worst-case scenario was for a disruption that took 250,000 barrels of capacity out of the picture. That would have been considered a major jolt, |
Gasoline tends to obscure everything, especially since we aren't paying heating bills right now. But we were already looking at a winter fuel problem. We're about to take another hit that will cause a lot of problems. |
The focus is on gasoline prices and all this gouging stuff. But the larger worry as far as I'm concerned is winter fuel, |
The focus is on gasoline prices and all this gouging stuff. But the larger worry as far as I'm concerned is winter fuel. |
The market remains very tight. There is a thin cushion of spare capacity. And the market keeps wanting to grow, even with these prices. Demand keeps going up, and there's the problem. |
We're already in uncharted territory now. We can't project what happens from another shot the size of Katrina or worse. |
You've got a major hole in the oil market right now, |