Crude neared the $70.00 per gallon mark and went up about $.90 a gallon within two days after Katrina struck the gulf cost. By last Friday, refining capacity was back on track and crude prices had dropped to pre-Katrina prices, yet the price at the pump in my area had hardly moved. More of a smoothing up than a smoothing out.
Funny how that always seems to happen with gasoline prices . . .
Here in Virginia Beach prices at the pump went from $2.50 on 8-30 to 3.59 the evening of 8-31. They're back down to $2.50-$2.60 here now.
http://gaswatch.energy.gov/
Gasoline was selling at $2.26 yesterday. They raised it 23 cents when Rita was raised to hurricane status. That is gouging IMO, though I can't complain when others are over 3$.
Use the link and tell the government that there was/is gouging. Remind them that the dealers purchased the gasoline on spot at prices ranging from 1.71 to 2.12, and that they may be receiving the benefits of buying spot crude refined from SR crude that sells for $27 not $64 dated Brent October-November, or $69 Nymex November.
BTW, I read the article and it seems the CEO is making a concrete statement that a disaster has already hit though the storm is three days out and hasn't picked a place to make landfall. I'm not saying disaster could not happen but it hasn't happened yet. It's like seeing a train speeding toward a RR crossing and saying ten people died in a fiery crash three minutes before the train enters the crossing. Unless this CEO has a crystal ball, this is just an excuse for wild speculation.
PS. If disaster does strike, we're looking at deep worldwide recession. Better sell your energy stocks at $72 rather than world recession prices of ? less from the world glut of crude. JMO--uneducated according to some.