Do you recall oil prices surging due to hurricanes threatening oil producing rigs off the US coast?

Question

Up until Katrina, I don't recall the oil prices going up due to hurricanes that "MIGHT" damage an oil producing rig in coastal waters. Has this always been the case? Looks like the latest tropical storm is driving the price of oil up, or so they say. To me, this looks like a SCAM to gouge the US people again.

Answer 1

Yes, all kinds of excuses to make the price of oil go up..

Answer 2

they raise the prices so that they can keep going along with their record profits.  god forbid they make less profit.

Answer 3

That was before speculators were allowed to control the price of oil on the futures market. The system was much more stable in those days. The prices did not go up until something actually happened and then only when supplies got low enough to effect the market during real time.

Answer 4

yeah, i also remember them saying one time that a squirrel got into a control room at a refinery and caused production to slow down.  they're full of it!  

Answer 5

me neither.and during katrina nothing happenin till after the strom.theyre already shuting down gas stations on the ms coast.well atleast walmarts gas stations just another reason i hate them

Answer 6

You are right, I don't remember it either..

Answer 7

It isn't just a matter of the oil rigs.  There are a number of large oil refineries located along the Gulf as well.  A couple were so seriously damaged after Katrina & Rita that it took over a year to bring them back up to full capacity.  It also takes a couple days to shut down a refinery, and time to restart it.  That means that to avoid an environmental disaster, they need to begin shutting them down based on any serious threat and that they will not be producing gasoline, heating oil, etc for several days.

Now to me, that should LOWER crude prices, since there will be reduced demand, but I guess that the evacuation of workers off of the oil rigs offsets that.

Answer 8

i believe you are right. i don,t remember it either. good point.

Answer 9

No, they have only been using that scam for the past couple of years.