U.S. Oil Surges $4 To Record Above $70

[Gold9472]

U.S. oil surges $4 to record above $70

http://today.reuters.com/news/newsAr...Y-CRUDE-DC.XML

Sun Aug 28, 2005 7:13 PM ET

SINGAPORE (Reuters) - U.S. crude oil futures surged more than $4 in opening trade on Monday, hitting a new record high above $70 a barrel after Hurricane Katrina forced Gulf of Mexico producers to shut in more than a third of their output.

Katrina, which strengthened into a rare, maximum power Category 5 hurricane as it spun through key oil and gas fields toward New Orleans, shut in a total 633,000 barrels per day (bpd), according to company figures on Sunday.

It also forced the closure of seven refineries and a major U.S. crude import terminal.

Crude oil futures on the New York Mercantile Exchange (NYMEX) surged as high as $70.80 a barrel, up $4.67 a barrel, as traders feared lasting damage could further strain an industry that has struggled to keep up with demand for two years.

[beltman713]

What happens if an oil drilling platform, or a refinery down there gets damaged?

Maybe we don't even want to think about it.

[somebigguy]

I'm loving my Smart Car. Enjoy your guzzlers ChummmmmmmmpS.

[Gold9472]

I'm loving my Smart Car. Enjoy your guzzlers ChummmmmmmmpS.

Dude... it's a WHOLE different world down here than it is up there. Believe me.