Hurricane Gustav and crude oil?

Question

This morning b/c of Gustav crude oil was at 120 a barrel. and all of the sudden it dropped 5 dollars, why so? B/c international help is available for oil stocks? I'm confused on how it could just drop so fast 5 dollars?

Also would like to know how are agriculture stocks going to be affected by the crude oil going up due to hurricane gustav?

Answer 1

It went up six dollars last week and down six the next day. When the tide rises so do the boats. Are we going to start blaming speculators again?

Answer 2

The price of oil goes up or down $5 a few times a week even when there are no hurricanes, this is really pretty common right now.  This may not even have much to do with Gustav, hard to say, and also hard to say if Gustav will have any effect at all going out more than a week or two.  I wouldn't worry about it to much, this does not look like another Katrina but probably just another moderately strong storm in the gulf (its not even supposed to go above category 3 before it makes landfall).