U.S. Economy May Slow From Hurricane’s Effect on Oil Supply

A jump in fuel prices caused by production and supply bottlenecks after Hurricane Katrina would do more to slow the U.S. economy than the demand-driven price increases of the past two years, economists said.

Katrina, the Gulf Coast’s worst storm since 1969, may disrupt crude-oil production and keep refineries responsible for more than 10 percent of the nation’s fuel from operating in coming weeks. Crude-oil futures jumped as much as 7.1 percent to a record $70.80 in New York yesterday before giving up most of the gain after the storm spared New Orleans from a direct hit.
Bloomberg