Why does a hurricane effect the price of gas?

Question

Every time the price of gas finally starts going down they say, "oh there is going to be a hurricane, so were going to raise the price, because it might stop production"? This makes no sense to me wouldn't they wait and see if the storm will actually do any damage before raising the price? How are they just going to raise the price because a hurricane might hit, and take out production, it sounds to me like they will use any excuse to raise the price, what do you think?

Answer 1

Welcome to the Post-Katrina World!

Answer 2

The storm is headed toward the gulf and predicted to be a category 3 hurricane by Sunday evening.

The prices are going to be raised because the men and women who work IN the gulf on the oil rigs are going to evacuate so they can be SAFE.

Obviously if the workers are not in the gulf the oil production will be stopped.

Answer 3

For the same reason a flood, a drought, or an early or late frost affects corn prices. It's the way the market works.

Answer 4

The speculators will use any excuse to drive up thier investments.

It isn't about any anticipated loss of production. These people are unscrupulous in thier dealings.

Answer 5

The main reason is due to the fact they have to get the men off the oil drilling wells in the path of the storm. If they are not drilling oil the company looses money and we pay for it at the pumps...