An ill wind for gas prices

Traders say that even though you’re already paying for the hurricane season, the price could spike to $6 a gallon if catastrophe strikes.

NEW YORK (CNNMoney.com) — Batten down the hatches: hurricane season starts on June 1. It’s expected to be a rough one, threatening to upend refineries and disrupt pipelines in the southern United States.

And that could send gas prices, already nearly 20% above what they were last year, soaring even higher.


That’s what happened three years ago when the Gulf Coast was battered by two hurricanes – Katrina and Rita – in the span of a few weeks.

“With the market the way it is now, a move in crude because of a hurricane could really be exacerbated,” said MF Global energy analyst Don Luke.

Peter Beutel, oil analyst at Cameron Hanover Beutel, said if a Katrina-like hurricane were to hit in July, gas prices could go as high as $5 or even $6.

CNN