Sticker Shock-$3 a gallon gas? Click the picture:
( Sign in Atlanta, Ga... )
Posted on 08/31/2005 8:49:52 PM PDT by 11th_VA
Motorists in Canada's biggest cities were jolted awake Wednesday by a stunning jump in gas prices — in some centres costs rose as much as 20 cents a litre — in the wake of the devastating impact of Hurricane Katrina on U.S. energy sector.
In Toronto, prices were running around the $1.19 a litre mark at some stations. Overnight in Vancouver, gas prices jumped 12 cents to about $1.13 a litre.
In Fredericton, prices at some stations went up to $1.19, an increase of about eight cents a litre. Lineups were reported at places still offering regular unleaded for $1.11.
According to Torontogasprices.com, the highest per-litre price reported over the past 24 hours was in Newmarket, Ont., where costs hit $1.29.
"This is not good," one Toronto motorist told news station CP24 Wednesday morning. "I do an hour and a half everyday to and from work. This is not good."
The price hikes come on the heels of reports of extensive damage to oil platforms in the Gulf of Mexico that sent crude oil prices surging above $70 (U.S.) overseas for a second consecutive day on Wednesday in what some analysts described as an "evolving energy crisis" as a result of the hurricane.
Hurricane Katrina touched land just east of New Orleans on Monday, leaving as much as 80 per cent of that historic city underwater. Estimates suggest hundreds were killed in Louisiana and Mississippi. Thousands more had to be rescued.
Televised images from New Orleans showed a city largely in ruins, with streets completely flooded and widespread power outages threatening those left behind. Millions were left without electricity.
"Besides the human tragedy unfolding in Louisiana, Mississippi and Alabama — replete with looting, shootings and dramatic rescues — there is an evolving crisis in the Gulf of Mexico's oil and gas industry," BMO Nesbitt Burns chief economist Sherry Cooper said.
"Oil futures hit a record settlement of $70 per barrel as traders awaited damage reports from U.S. oil and gas refineries in the Gulf."
The U.S. Coast Guard said at least seven rigs are adrift, while eight refineries have shut down because of damage caused by the hurricane.
According to some estimates, about 95 per cent of the daily oil output from the Gulf of Mexico is out of commission, resulting in soaring commodity prices and surging gasoline costs across much of North America.
"Given that the United States produces 7.75 million barrels of oil per day including natural gas liquids, Hurricane Katrina has knocked out roughly one-fifth of all domestic production," Ms. Cooper said.
"To put this in perspective, the U.S. would need to find either a new Canada, Venezuela, Mexico, or Saudi Arabia to replace this loss based on what these countries sell to the United States."
"This definitely is an emergency that can send crude oil prices significantly above the current sky-high levels, and cause significant damage to the U.S. and global economies."
Analysts were also forecasting further increases in both oil and gasoline prices in the days and weeks ahead as the full impact of the hurricane becomes known.
"It seems that all bets are off these days," BMO senior economist Douglas Porter told globeandmail.com. "If you can get a 20 per cent move in a day, there's nothing saying we can't get a similar move later in the week, especially heading into what's one of the busiest driving weekends of the year."
Meanwhile, the Bush administration said it has decided to release oil from federal petroleum reserves to help refiners affected by the hurricane.
The move, which was expected later in the day, is designed to give refineries a temporary supply of crude oil to take the place of interrupted shipments from tankers or offshore oil platforms affected by the storm.
The government's emergency petroleum stockpile — nearly 700 million barrels of oil stored in underground salt caverns along the Texas and Louisiana Gulf Coast — was established to cushion oil markets during energy disruptions.
With files from Canadian Press and Associated Press
I'm so confused.
The story is in both litres instead of gallons, and canadian dollars instead of american dollars!
I can manage converting english to metric, but not converting play money into real money!
LOL !
1 US Dollar = 1.22 Canadian Dollar
Therefore on average a gallon of gasoline in Canada will cost approximately $ 3.7 US dollars.
OK - 1.19 per liter x 4 ~ 4.76 C per gallon. But that's Canadian, not dollars so .85 x 4.76 ~ 4.05 American per gallon.
Good thing we got Anwar drilling authorization in the Energy Bill... oh wait... dems fought againts it and repubs caved, and we don't.
Nevermind.
we didn't cave, we didn't have 60 votes. its going into the budget bill, where we only need 50.
still, the real battle will be in the courts. even if ANWR passes, the courts will stop it, the liberals have plenty of federal judges available to stop it.
( Sign in Atlanta, Ga... )
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